Question: fav s is operating an old machine which costs $10,000 annually to operate and is functional for 4 more years. In order to replace it

fav s is operating an old machine which costs $10,000 annually to operate and is functional for 4 more years. In order to replace it now with a new machine, what should be the maximum cost of buying this new machine which has a life of 4 years and costs only $4,000 annually to operate? The opportunity cost of capital is 11%.

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