a company has a van with a book value of $48,000 and a remaining useful life of five years. At the end of the five years, the van will have a zero-salvage value. RCC can purchase a new van for $49,000 and receive $30.000 in return for trading in its old van. The old van has variable manufacturing costs of $8,000 per year. The new van will reduce variable manufacturing costs by $1,800 per year over the five-year life of the van.

The total increase or decrease in income by replacing the current van with the new van is (increase should be entered as a positive number and decrease in income should be entered as a negative number, i.e. decrease of 2,200 should be entered as -2200):