Problem 1 (10) A machine currently in use was bought five years ago for $4,000. Now it can be sold for $2,500, but could be used for 3 more years (remaining useful life), at the end of which time it would have salvage value of $100. The annual operating and maintenance costs for the old machine amount to $8,000. A new machine representing a new technology can be purchased at an invoice price of $14,000 to replace the present machine. Because of the nature of the manufactured product, the new machine has an expected economic life of 3 years, and it will have no salvage value at the end of that time. The new machine's expected operating and maintenance costs amount to $2,000 for the first year and $3,000 for each of the next 2 years. Assume MARR of 15% to answer the following questions: (a) Is there any sunk cost present?? At what rate the old machine will be depreciated Should the old machine be replaced? If the answer is yes, when should it be replaced