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Carla Vista Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per
Carla Vista Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales involces. Management is considering updating its computer with a laster model that would eliminate all of the overtime processing- It sold now, the current machine would hive a salvage value of $10.400. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremiental analysis to determine whether the current machine should be replaced. (in the first two columns, enter costs and openses ar pesitive amounts, and ony amounts recelved as negative amounts. in the third column, enter net income increases as positive. aemounts and decreasei as negative amounts: Enter negative amounts using either a negative sign preceding the number es. 45 or parentheses Net Income Retain Replace Increase Machine Machine (Decrease) Operating costs New machine cost Salvage value (old) Total The current machine should be
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