16. Krown Company has a used machine with a net book value of $270,000 and a present scrap (cash) value of $63,000. A new machine that is available at a price of $225,000 has the same capacity, but it would reduce direct labor costs for $18,000 per year. Neither machine will have a scrap value at the end of its useful life. As of now both machines have an estimated life of ten years. As an alternative to keeping the old machine, its replacement with the new machine would have what total advantage or disadvantage, that is what is the effect if we replace the old machine? a. an advantage of 18,000 b. a disadvantage of 18,000 c. an advantage of 12,000 d. a disadvantage of 12,000 e. the decision maker is indifferent between both machines

16. Krown Company has a used machine with a net book value of $270,000 and a present scrap (cash) value of $63,000. A new machine that is available at a price of $225,000 has the same capacity, but it would reduce direct labor costs for $18,000 per year. Neither machine will have a scrap value at the end of its useful life. As of now both machines have an estimated life of ten years. As an alternative to keeping the old machine, its replacement with the new machine would have what total advantage or disadvantage, that is what is the effect if we replace the old machine? a. an advantage of 18,000 b. a disadvantage of 18,000 c. an advantage of 12,000 d. a disadvantage of 12,000 e. the decision maker is indifferent between both machines