Dinkins Inc is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years The old machine can be sold for $15,000 A new machine with a purchase price of $150,000 is being considered as a replacement It will have a useful life of five years and no residual value It is estimated that annual variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased The net differential increase or decrease in cost for the entire five years for the new equipment is a $10,000 increase b $10,000 decrease c $25,000 increase d $25,000 decrease

Question

Dinkins Inc  is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years  The old machine can be sold for $15,000  A new machine with a purchase price of $150,000 is being considered as a replacement  It will have a useful life of five years and no residual value  It is estimated that annual variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased  The net differential increase or decrease in cost for the entire five years for the new equipment is  a  $10,000 increase  b  $10,000 decrease  c  $25,000 increase  d  $25,000 decrease

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Dinkins Inc. is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years. The old machine

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