X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $61,000 per year; operating costs with the new machine are expected to be $46,000 per year. The new machine will cost $67,000 and will last for 5 years, at which time it can be sold for $5,000. The current machine will also last for 5 more years but will have zero salvage value. Its current disposal value is $7,000. Assuming a discount rate of 8%, what is the net present value of replacing the current machine? [Note: For the capital budgeting questions, use the Present Value tables in the Coursepack or with the link after the last exam question.] A: $2,287 B: $2,584 C: $2,920 D: $3,300 E: $3,729 F: $4,214 Submit Answer Tries 0/99