Exercise $10-10($Algo$)$ Keep or replace LO P$5$

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $$46,000$ and a remaining useful life of five years. It can be sold now for $$56,000.$ Variable manufacturing costs are $$47,000$ per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years.

Purchase price

Variable manufacturing costs per year

$\backslash$table$[[$Machine A$,$Machine B$],[$$$116,000,$$$129,000$