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A commercial oven with a book value of $56,610 has an estimated remaining 5 year life. A proposal is offered to sell the oven for

A commercial oven with a book value of $56,610 has an estimated remaining 5 year life. A proposal is offered to sell the oven for $17,690 and replace it with a new oven costing $101,100. The new machine has a 5-year life with no residual value. The new machine would reduce annual maintenance costs by $19,440.

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

Annual maintenance cost reduction $
Number of years applicable
Total differential decrease in cost $
Proceeds from sale of equipment $
Cost of new equipment
Net differential decrease in cost from replacing equipment $

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