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8 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful

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8 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of four years. It can be sold now for $56,000 Variable manufacturing costs are $46,000 per year for this old machine Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years 104 pot Machine Machines Purchase price $ 121,000 $ 130,000 Variable manufacturing costs per year 19,900 15,000 (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? (d) If the machine should be replaced, which new machine should Loper purchase? Complete this question by entering your answers in the tabs below. Reg Reg Cando Comoute the income increase or decrease from replacing the old machine with Machine A (Amounts to be deducted should be indicated with a mission) Income inch Machine Keep of Replace Analysis Keep Replace (Decrease from Replacing Rever wengine 5 of. 000 costo Purch new machine 1 0 (121.00 Varamedung 5 (13,000) Income (19.0000 600 (46.000 ME GEW HI POV 3 2 1 Next >

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