Question4of'lO 0/1 E 5 Current Attempt in Progress ' X Youranswerisincorrect. ' Sleek Looks has been using the same machines to make its name brand clothing for the last ve years. A cost efciency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $100,000. The old machines presently have a book value of $60,000 and a market value of $6,000. They are expected to have a ve-year remaining life and zero salvage value. The new machines would cost the company $50,000 and have operating expenses of $9,000 a year. The new machines are expected to have a ve-year useful life and no salvage value. The operating expenses associated with the old machines are $15,000 a year. The new machines are expected to increase quality,justifying a price increase, and thereby increasing sales revenue by $5,000 a year. Which of the following statements is true? 0 The company will be $11,000 better off over the 5-year period if it replaces the old equipment. 0 The company will be $6,000 better off over the 5-year period if it replaces the old equipment. The company will be $20,000 better off over the 5-year period if it keeps the old equipment. 0 The company will be $12,000 better off over the 5-year period if it replaces the old equipment