(Ignore Income Taxes in This Problem

(Ignore income taxes in this problem.) Charlie Corporation is considering buying a new donut maker.This machine will replace an old donut maker that still has a useful life of 6 years.The new machine will cost $3,600 a year to operate,as opposed to the old machine,which costs $3,800 per year to operate.Also,because of increased capacity,an additional 20,000 donuts a year can be produced.The company makes a contribution margin of $0.10 per donut.The old machine can be sold for $7,000 and the new machine costs $30,000.The incremental annual net cash inflows provided by the new machine would be:

A) $2,200
B) $200
C) $2,000
D) $5,000