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26 8 01:25:27 Janko Wellspring Incorporated has a pump with a book value of $41,000 and a four-year remaining life. A new, more efficient pump
26 8 01:25:27 Janko Wellspring Incorporated has a pump with a book value of $41,000 and a four-year remaining life. A new, more efficient pump is available at a cost of $62,000. Janko can receive $9,700 for trading in the old pump. The old machine has variable manufacturing costs of $42,000 per year. The new pump will reduce variable costs by $13,700 per year over its four-year life. Should the pump be replaced? Multiple Choice Yes, because income will increase by $2,500 in total. Yes, because income will increase by $2,500 per year. No, because the company will be $2,500 worse off in total. No, because income will decrease by $13,700 per year. No, Janko will record a loss of $19,400 if they replace the pump
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