Question: help answer multiple-choice question with explanation please X Company is considering replacing one of its machines in order to save operating costs. Operating costs with
help answer multiple-choice question with explanation please
X Company is considering replacing one of its machines in order to save operating costs. Operating costs with the current machine are $68,000 per year; operating costs with the new machine are expected to be $32,000 per year. The new machine will cost $48,000 and will last for six years, at which time it can be sold for $2,500. The current machine will also last for six more years but will not be worth anything at that time. It cost $35,000 three years ago but is currently worth only $4,000. Assuming a discount rate of 5%, what is the incremental net present value of buying the new machine instead of keeping the current machine? OA: $105,715 OB: $140,601 OC: $186,999 D: $248,709 OE: $330,783 OF: $439,942 Submit Answer Tries 0/99
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