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A machine with a book value of $250,700 has an estimated steyear life. A proposal is offered to sell the old machine for $215,500 and
A machine with a book value of $250,700 has an estimated steyear life. A proposal is offered to sell the old machine for $215,500 and replace with a new machine at a cost of $200,100. The new machine osa year life with no residual value. The new machine would reduce al direct labor costs from $50,400 to 540,300 Prepare a teremtial anal vis dated Aprt 11 on whether to continue with the old machine (Alternativt 1) or replace the old machine (Alternative 2). W an amount is ere, order to". Un auton ta ndicate subtracted or negative numbers or a los Differential Analysis Continue with Old Machine (AIL 1) or Replace Old Machine (2) April 11 Contoe with old Machine (Alternative 1) Replace Old Machine (Alternative) Ofrential effect on came (Alternative 23 Revenues Proceeds from sale of old machine Costu Purchase price Director 6 years) Income 000 | 000 D DOO . Should the come with the machine (Alternative place the main (Alematve 21
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