QUESTION $1$

Elag for Review

A machine has an initial cost of $$40,000$ and operating costs of $$3500$ each year. Its salvage is calculated by subtracting $$\frac{4000}{?}$ year from its initial cost. The machine is now $4$ yr old. Assuming an effective annual interest rate of $12\%,$ the cost of owning and operating the machine for one more year is most nearly

A$.$ $$7500$

B$.$ $$8800$

C$.$ $$10,000$

D$.$ $$12,000$