edugen.wileyplus.com *WileyPLUS Problem 7.6 y! Sew It Inc. has an industrial sewing machine that it has used for the past 5 years. The company is considering replacing the machine It with a faster model as it is starting to break down more often. As it will be faster and eliminate overtime, it will increase revenues by ang $4,400 per year over its useful life of 8 years. nd m Current Machine New Machine Original purchase cost $26,400 $28,500 Accumulated depreciation $21,300 Useful life 8 years 8 years If sold now, the current sewing machine would have a salvage value of $5,200. If it is used for the remainder of its useful life, the current sewing machine would have zero salvage value. The new sewing machine is expected to have zero salvage value after 8 years. Determine whether the current sewing machine should be replaced. (Ignore the time value of money.) (If an amount reduces the net income then enter with a negative sign preceding the number, 0.9. -15,000 or parenthesis, e.g. (15,000).) Retain Replace Incremental cost savings sa m Incremental revenues New machine cost Proceeds from sale of old machine 14 Net Incremental savings The company replace the sewing machine. Quanto Attanten of and