X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $64,000 per year; operating costs with the new machine are expected to be $49,000 per year. The new machine will cost $71,000 and will last for five years, at which time it can be sold for $1,500. The current machine will also last for five 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 4%, what is the incremental net present value of replacing the current machine with the new machine? * Tries 0/3 X Company is planning to launch a new product. A market research study, costing $150,000, was conducted last year, indicating that the product will be successful for the next four years. Profits from sales of the product are expected to be $170,000 in each of the first two years and $110,000 in each of the last two years. The company plans to undertake an immediate advertising campaign that will cost $88,000. New manufacturing equipment will have to be purchased for $360,000; it will have zero disposal value at the end of the four years. Assuming a discount rate of 5%, what is the net present value of launching the new product? # * Tries 0/3