Question: A company is considering replacing a machine that was bought six years ago for $60,000. The machine, however, can be repaired and its life extended

A company is considering replacing a machine that was bought six years ago for $60,000. The machine, however, can be repaired and its life extended by five more years. If the current machine is replaced, the new machine will cost $45,000 and will reduce the operating expenses by $8,000 per year. The seller of the new machine has offered a trade-in allowance of $12,000 for the old machine. If is 12% per year before taxes, how much can the company spend to repair the existing machine? Choose the closest answer.
(a) $22,371
(b) $50,628
(c) $4,161
(d)-$1,000

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