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A company is considering replacing an existing machine with a new machine. Based on the information below, should the company keep or replace the existing
A company is considering replacing an existing machine with a new machine. Based on the information below, should the company keep or replace the existing machine? Existing Machine Book value Variable manufacturing costs per year Salvage value Selling price Remaining useful life $ 35,000 $ 10,000 $0 New Machine Purchase price Variable manufacturing costs per year $ 40,000 2 years Useful life O Keep the existing machine because the new machine will decrease overall income by $55,000. O Keep the existing machine because the new machine will increase overall income by $55,000. O Replace the existing machine because the new machine will decrease overall income by $55,000. O Replace the existing machine because the new machine will increase overall income by $55,000. $ 75,000 $ 8,000 5 years A company is considering replacing an existing machine with a new machine. Based on the information below, should the company keep of replace the existing machine? Keep the existing machlne because the new machine will decrease overall income by $55,000 Keep the existing machine because the new machine will increase overall income by $55,000. Replace the existing machine because the new machine will decrease overall income by $55,000 Replace the existing machine because the new machine will increase overall income by $55,000
A company is considering replacing an existing machine with a new machine. Based on the information below, should the company keep or replace the existing machine? Existing Machine Book value Variable manufacturing costs per year Salvage value Selling price Remaining useful life $ 35,000 $ 10,000 $0 New Machine Purchase price Variable manufacturing costs per year $ 40,000 2 years Useful life O Keep the existing machine because the new machine will decrease overall income by $55,000. O Keep the existing machine because the new machine will increase overall income by $55,000. O Replace the existing machine because the new machine will decrease overall income by $55,000. O Replace the existing machine because the new machine will increase overall income by $55,000. $ 75,000 $ 8,000 5 years
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