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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 $47,000 and a
remaining useful life of four years. It can be sold now for $57,000. Variable manufacturing costs are $50,000 per year for this old
machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is four
years.
(a) Compute the income increase or decrease from replacing the old machine with Machine A.
(b) Compute the income increase or decrease from replacing the old machine with Machine B.
(c) Should Lopez keep or replace its old machine?
(d) If the machine should be replaced, which new machine should Lopez purchase?
Complete this question by entering your answers in the tabs below. (NOTE: can you please make sure to complete chat form both machine A and machine B, thank youuuuuu)
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