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00 8 15 points Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47.000 and

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00 8 15 points Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47.000 and a remaining useful ife of four years. It can be sold now for $57,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. machine Machines Purchase price $ 118,000 $ 131,000 Varble manufacturing conta per year 32,000 12,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B. c) Should Lopez keep or replace its old machine? (en if the machine should be replaced, which new machine should Lopez purchase? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Red Red Cando Compute the income increase or decrease from replacing the old machine with Machine A (Amounts to be deducted should be Indicated with a min) Income Increase Rele (Decrease from Replacing ST.000 Puma 5 3 290.000 000 (18.000 (1100001 1710 1000 00 8 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47000 and a remaining useful life of four years. It can be sold now for $57,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. 15 points Purchase price Vaste manuaturing conta per year Wachina $ 118,000 22.000 Machine $ 131,000 12,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B. c) Should Lopez keep or replace its old machine? len if the machine should be replaced, which new machine should Lopez purchase? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. RA Cando Compute the income case or decrease from replacing the old machine with Machine A. (Amounts to be deducted thould be Indicated with a minus ign) Replice Income Increase (Decrease from Replacing Pure 5 5 20.000 500 (18.000 (110.0001 7100 4,000 8 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of four years. It can be sold now for $57,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. 15 points Machine Machine Purchase price 118,000 5 131,000 Variable manafacturing costs per year 22,000 12,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? id) If the machine should be replaced, which new machine should Lopez purchase? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. REGA Hea cando Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign) Machine Keep Replace Analysis Korp Heplace Income Increase Decrease from Replacing os 57.000 of exting Coats Purchase of new machine 2315.000 131.000 100.000) 5 14.00 101.000

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