Your company needs a machine for the next seven years, and you have two choices (assume an annual interest rate of 15%).

Machine A costs $100000 and has an annual operating cost of $47000. Machine A has a useful life of seven years and a salvage value of $15000.

Machine B costs $150000 and has an annual operating cost of $30000. Machine B has a useful life of five years and no salvage value. However, the life of machine B can be extended by two years with a certain amount of investment. If machine Bs life is extended. It will still cost $30000 annually to operate and still have no salvage value.

What would you pay at the end of year 5 to extend the life of machine B by two years?