Course Contents >> EXAM 2 >> Question 7 " Timer Notes Evaluate Feedback Print On January 1, 2021, X Company bought a machine for $40,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $32,000. Since they are expecting future operating costs to continue to be $32,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $45,000, operating costs with the new machine will only be $24,000 each year. Both machines will last for 5 more years. The current machine can be sold immediately for $9,000 but will have no salvage value at the end of 5 years. The new machine will have a salvage value of $4,500 at the end of 5 years. Assuming a discount rate of 4%, what is the net present value of replacing the current machine with the new one? OA: $2,422 OB: $2,833 OC: $3,315 OD: $3,879 OE: $4,538 OF: $5,309 Submit Answer Tries 0/99