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Defferential Analysis for Mactine Replacement Preposal Fint Fooling Company is considoring replacing a machine that has been used in its factory for 2 vores Relevant
Defferential Analysis for Mactine Replacement Preposal Fint Fooling Company is considoring replacing a machine that has been used in its factory for 2 vores Relevant doth associated with the bgesations of the old machine and the new machine, nether of which has ary estimated residual value, are as follows: Annual nonmanidecturing ogerating expenses and revenue are not empected to be affected ty burchase cf the ned machine Required: Annual nanmanufacturing aperating expenses and fevemue are not expected to be affected by purchase af the new machine. Requiredt 1. Prepare a differential analysis as of November 8 to determine whether to Continue with Old Machine (Aiternative. 1) or Replace Old Machire (Atermative. 2) The analysis should indicate the deferential prolit that would resalt over the 6 - year pesiod if the new mochine is acquired. If arr amount is zuro, enter zeco .0" For those boxes in which you must enter subtracted or negative numbers use a minsis sign Differential Analvsis 2. What other factors should be corsidered before a final docision is reached? a. Are there any improvements in the gublity of work turned out by the new machine? b. What opporfunites are avalable for the use of the funds required to purchase the new madine? c. Are there any improvemants in the quality of work turned out by the new machine and what opoortanities are avalable for the use if the funds required to putchase the new machine
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