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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $250000 75000 New

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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $250000 75000 New Machine $500000 -0- Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs 10 years -0 -0- 10 years $205000 $150000 If the old machine is replaced, it can be sold for $20000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $(50000) $20500 $70000 $(5000)

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