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A machine purchased three years ago for $302,000 has a current book value using straight-line depreciation of $194,000; its operating expenses are $35,000 per yeac.
A machine purchased three years ago for $302,000 has a current book value using straight-line depreciation of $194,000; its operating expenses are $35,000 per yeac. A replacement machine would cost $222,000, have a useful life of ten years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $79,000 after ten years. The current disposal value of the old machine is $89,000; if it is kept 10 more years, its residual value would be $15,000. Required Caiculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced
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