Downtown Candies Is Considering Replacing the Equipment It Uses to Make

Downtown Candies is considering replacing the equipment it uses to make chocolate candy bars. The equipment would cost $721,000 and lower manufacturing costs by an estimated $170,000 a
Year. The equipment belongs in a 30% CCA class. The required rate of return is 14% and the tax rate
Is 35%. What is the increase in net income for the second year from this proposed project?

A) -$9,006
B) -$417
C) $25,550
D) $40,203
E) $47,200