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A machine with a book value of $250,600 has an estimated remaining life of 6 years. A proposal is offered to sell the old machine
A machine with a book value of $250,600 has an estimated remaining life of 6 years. A proposal is offered to sell the old machine for $216,300 and replace it with a new machine at a cost of $281,300. The new machine has a 6 -year life with no residual value. The new machine would reduce annual direct labor costs from $49,200 to $39,400. a. Prepare a differential analysis dated June 2 on whether to continue with the old machine (Alternative 1 ) or replace the old machine (Alternative 2 ). If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. b. Should the company continue with the old machine (Alternative 1 ) or replace the old machine (Alternative 2)
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