Buena Vista Company has a machine that affixes labels to bottles . The machine has a book value of $80,000 and a remaining useful life of 3 years and no salvage value . The old machine cannot be sold if they purchas the new machine as there currently is no market for it . A new , more efficient machine is available at a cost $ 200,000 that will have a 3 -year useful life with no salvage value . The new machine will lower annual varial production costs from $420,000 to $310,000 . What are the total production costs for the remaining life of the existing machine ? $ Is there a net savings / loss if Buena Vista decides to replace the machine with a new one? What is the incremental difference (saving or loss )in costs between retaining the existing machine vs. buy machine ? $ Vould you recommend Buena Vista replace the equipment