A tool and die company in Hanover is considering the purchase of a drill press with fuzzy-logic
software to improve accuracy and reduce tool wear. The company has the opportunity to buy a
slightly used machine for $15,000 or a new one for $21,000. Because the new machine is a
more sophisticated model, its operating cost is expected to be $7000 per year, while the used
machine is expected to require $8200 per year. Each machine is expected to have a 25-year life
with a 5% salvage value. Tabulate the incremental cash flow.