Question
Bryant Company has a factory machine with a book value of $93,700and a remaining useful life of7years. It can be sold for $34,700. A new
Bryant Company has a factory machine with a book value of $93,700and a remaining useful life of7years. It can be sold for $34,700. A new machine is available at a cost of $378,500. This machine will have a7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $605,900to $457,900. Prepare analysis showing whether the old machine should be retained or replaced.(In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts.In the third column, enter net income increases as positive amounts and decreases as negative amounts.Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Retain Equipment Replace Equipment Net Income
Increase (Decrease)
Variable manufacturing costs
New machine cost
Sell old machine
Total
The old factory machine should be retained or replaced jQuery224012968007300654905_1570116192363
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