X Company is considering replacing one of its machines in order to save operating costs. The following information is available: Current machine Current $4,000 sales value Final 0 sales value Operating 65,000 costs New machine Purchase cost $70,000 Final sales value 1,500 Operating 40,000 costs Both machines will last for 5 more years. Assuming a discount rate of 5%, what is the incremental net present value of replacing the current machine with the new machine? A: B: D: E: F: Oc: $29,932 $43,401 $62,931 $91,251 $132,313 $191,854 Submit Answer Tries 0/99 X Company is considering buying a new machine that will cost $142,500 and that will generate annual cash inflows of $22,873 for 7 years. If the company buys the new machine, what is the internal rate of return? A: 0.03 B: 0.04 C: 0.05 D: 0.06 E: 0.07 F: 0.08 Submit Answer Tries 0/99