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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 invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. If sold now, the current machine would have a salvage value of $10,800, If operated for the remainder of its useful life, the current machlne would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. tin 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 increeses as positive amounts and decreases as negotive amounts. Enter negative amounts uning either a negutive sign preceding the number es. -45 or parentheses eg (45)) The current machine should be
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