X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $68,000 per year; operating costs with the new machine are expected to be $33,000 per year. The new machine will cost $52,000 and will last for five years, at which time it can be sold for $2,000. The current machine will also last for five more years but will not be worth anything at that time. It cost $31,000 three years ago but is currently worth only $5,000.

Assuming a discount rate of 7%, what is the incremental net present value of buying the new machine instead of keeping the current machine?

A: $97,926

B: $122,408

C: $153,009

D: $191,262

E: $239,077

F: $298,846

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