Bryant Company has a factory machine with a book value of $87,400 and a remaining useful life of 7 years. It can be sold for $29,200. A new machine is available at a cost of $346,000. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $622,000 to $565,000. Create an 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

EquipmentReplace

EquipmentNet Income

Increase (Decrease)Variable manufacturing costs$enter the variable manufacturing costs in dollars

$enter the variable manufacturing costs in dollars

$enter the variable manufacturing costs in dollars

New machine costenter the cost of the new machine

enter the cost of the new machine

enter the cost of the new machine

Sell old machineenter the proceeds from the sale of the old machine

enter the proceeds from the sale of the old machine

enter the proceeds from the sale of the old machine

Total$enter a total amount

$enter a total amount

$enter a total amount

The old factory machine should be select an option

replacedretained

.