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 $45,000. Disposal value at the end of its 6-year useful life will be $7,000. The old equipment was purchased 3 years ago for $21,000. It can be sold immediately for $5,000 but will have zero disposal value in 6 years. Maintenance work, costing $2,500, will be necessary on the old equipment in Year 4. The new equipment will result in $10,000 of operating cost savings each year. Assuming a discount rate of 5%, 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: $15,964 B: $18,040 C: $20,385 D: $23,035E: $26,029 F: $29,413