Granfield Company end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,100. Granfield can has a piece of manufacturing equipment with a book value of $35,500 and a remaining useful life of four years. At the purchase a new machine for $111,000 and receive $21,100 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18100 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is: $14.400 decrease $17500 increase $48,850 increase Next>