Brief Exercise 9-2 Making an Equipment Replacement Decision (LO1 - CC2) Waukee Railroad is considering the purchase of a powerful, high-speed wheel grinder to replace a standard wheel grinder now in use. Selected information on the two machines follows: Original cost/New cost Accumulated depreciation to date Current salvage value Estimated cost per year to operate Remaining years of useful life Standard Wheel Grinder $45,000 $18,000 $11,750 $26,250 5years High-Speed Wheel Grinder $67,500 $ $ $16,250 0 0 5years Required: Compute the net advantage or disadvantage of purchasing the high-speed wheel grinder covering the five-year period. Use only relevant costs in your analysis. Ignore tax effects.

Brief Exercise 9-2 Making an Equipment Replacement Decision (LO1 - CC2) Waukee Ralroad is considering the purchase of a powerfut, high-speed wheel grinder to replace a standard wheel grinder now in use. Selected informotion on the two machines follows: Required: Compute the net advantage or disadvantage of purchasing the high-speed wheel arinder cavering the five-year period. Use only relevant costs in your analysis. Ignore tax effects