new machine is bought. The selling price of the product would remain unchanged at 80 per unit.

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new machine is bought. The selling price of the product would remain unchanged at 80 per unit. The following is the cost of producing one unit of product using both the existing and new machines: The existing machine has an accounting book value of 40,000, and it may practically be treated at fully depreciated for tax purposes. It is estimated that the machine will be useful for 5 years. The supplier of the new machine has offered to accept the old machine in exchange for 100,000. However, the market price of the old machine today is 60,000 and it is expected to be

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