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Main Menu Contents Grades Chat Course Contents Second Chance Exam 2 Question 7 Timer Notes Evaluate Feedback Print O 1 (133.21 KiB) Viewed 40 times

Main Menu Contents Grades Chat Course Contents » SECOND CHANCE EXAM 2 » Question 7 Timer Notes Evaluate Feedback Print On January 1, 2021, X Company bought a machine for $41,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $33,000. Since they are expecting future operating costs to continue to be $33,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $47,000, operating costs with the new machine will only be $23,000 each year. Both machines will last for 4 more years. The current machine can be sold immediately for $8,000 but will have no salvage value at the end of 4 years. The new machine will have a salvage value of $4,500 at the end of 4 years. Assuming a discount rate of 6%, what is the net present value of replacing the current machine with the new one? Submit Answer Tries 0/4