Exercise $23-10($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 $$46,000$ and a remaining useful life of four years. It can be sold now for $$56,000.$ Variable manufacturing costs are $$49,000$ per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is four years.

$\backslash$table$[[$Purchase price,Machine A$,$Machine B$],[$Variable manufacturing costs per year,$$123,000,$$$138,000$