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Exercise 2 3 - 1 0 ( Algo ) Keep or replace LO P 5 Lopez Company is considering replacing one of its old manufacturing

Exercise 23-10(Algo) Keep or replace LO P5
Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $49,000 and a remaining useful life of five years. It can be sold now for $59,000. 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.
\table[[,Machine A,Machine B],[Purchase price,$123,000,$136,000
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