You are operating an old machine that is expected to produce a cash inflow of $5,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,000 but is much more efficient and will provide a cash flow of $10,000 a year for 4 years. The company uses a 10% discount rate for equipment replacement decisions. Should you replace the old machine? Multiple Choice Do not replace, the equivalent annual annuity of the new machine is $2,925 Do not replace, the equivalent annual annuity of the new machine is $3,691 It doesn't matter, the equivalent annual annuity of the new machine is $5,000 Replace, the equivalent annual annuity of the new machine is $16,309 Do not replace, the old machine has a higher NPV