1.2.

Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Old Machine $260000 78000 New Machine $520000 -0- Accumulated Depreciation Remaining useful life Useful life -0- 10 years -0- $215000 10 years $156000 Annual operating costs If the old machine is replaced, it can be sold for $20800. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is 0 $90800 O $(52000) O $(5200) O $21500