X Company is trying to decide whether to continue using old equipment to make Product A or replace it with new equipment that will have lower operating costs. The following information is available: . The new equipment will cost $47,000. Disposal value at the end of its 5-year useful life will be $5.000 The old equipment was purchased 3 years ago for $23,000. It can be sold immediately for $5,000 but will have zero disposal value in 5 years. Maintenance work, casting $3,000, will be necessary on the old equipment in Year 3. . The new equipment will result in $9,000 of operating cost savings each year. Assuming a discount rate of 6%, what is the net present value of replacing the old equipment with the new equipment? (Note: Use the Present Value tables in the Coursepack.] A: $1,384B : $1,730 C: $2,163 D: $2,704 E: $3,380 F: $4,225 Submit Answer Tries 0/99