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X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $69,000 per year;

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X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $69,000 per year; operating costs with the new machine are expected to be $30,000 per year. The new machine will cost $45,000 and will last for six years, at which time it can be sold for $2,500. The current machine will also last for six more years but will not be worth anything at that time. It cost $34,000 three years ago but is currently worth only $4,000. Assuming a discount rate of 7%, what is the incremental net present value of buying the new machine instead of keeping the current machine? OA: $75,048 OB: $93,810 Oc: $117,262 OD: $146,578 OE: $183,222 OF: $229,028 Submit Answer Tries 0/99

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