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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 $65,000 per year;
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $65,000 per year; operating costs with the new machine are expected to be $35,000 per year. The new machine will cost $54,000 and will last for six years, at which time it can be sold for $1,000. The current machine will also last for six more years but will not be worth anything at that time. It cost $33,000 three years ago but is currently worth only $6,000. Assuming a discount rate of 6%, what is the incremental net present value of buying the new machine instead of keeping the current machine? A: $100,215 B: $133,286 C: $177,270 D: $235,770 OE: $313,573 | OF: $417,053 Submit Answer Tries 0/99
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