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A commercial oven with a book value of $49,440 has an estimated remaining 5 year life. A proposal is offered to sell the oven for

A commercial oven with a book value of $49,440 has an estimated remaining 5 year life. A proposal is offered to sell the oven for $15,450 and replace it with a new oven costing $88,310. The new machine has a 5-year life with no residual value. The new machine would reduce annual maintenance costs by $16,980.

Provide a differential analysis on the proposal to replace the commercial oven.

Annual maintenance cost reduction $fill in the blank 1
Number of years applicable fill in the blank 2
Total differential decrease in cost $fill in the blank 3
Proceeds from sale of equipment fill in the blank 4 $fill in the blank 5
Cost of new equipment fill in the blank 6
Net differential decrease in cost from replacing equipment $fill in the blank 7

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