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Company X has an existing machine which is straight line depreciated to process its invoices. Following information pertains to this machine. Item Amount Unit TL

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Company X has an existing machine which is straight line depreciated to process its invoices. Following information pertains to this machine. Item Amount Unit TL Existing machine original cost Existing machine total useful life Existing machine remaining useful life Existing machine operating cost pa Existing machine salvage value 100,900 4 3 105,400 50,300 years years TL TL The company is considering replacing this machine with a new one. New machine will cost TL110,000 and will have 3 years useful life. Per annum operating costs of the new machine are TL80,030. Determine if the company should retain or replace the existing machine ignoring the time value of money. Note enter 1 if the machine is retained, enter 2 if the machine is replaced

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