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Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price

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Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $400000 $800000 Accumulated Depreciation 120000 -0- Remaining useful te 10 years -0. Useful life -0- Annual operating costs $325000 $240000 10 years If the old machine is replaced. It can be sold for $32000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage of replacing the old machine is 5(8000) $32500 $82000 $(30000)

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