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 $52,000. Disposal value at the end of its 6-year useful life will be $5,000. The old equipment was purchased 3 years ago for $24,000. It can be sold immediately for $5,000 but will have zero disposal value in 6 years. Maintenance work, costing $3,000, will be necessary on the new equipment in Year 3. The new equipment will result in $10,000 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: $2,387|OB: $3,175 C: $4,223 OD: $5,616 E: $7,470 | OF: $9,935