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help me, please A company is considering replacing an existing machine with a new machine. Based on the information below, should the company keep or
help me, please
A company is considering replacing an existing machine with a new machine. Based on the information below, should the company keep or replace the existing machine? Existing Machine New Machine Book value $ 35,000 Purchase price $ 75.000 Variable manufacturing costs per year $ 19,000 Variable manufacturing costs per year $ 8,000 Salvage value Selling price $ 40,000 Remaining useful life 2 years Useful life 5 years $0 Keep the existing machine because the new machine will decrease overall income by $55,000 Keep the existing machine because the new machine will increase overall income by $55,000. Replace the existing machine because the new machine will decrease overall income by $55,000 Replace the existing machine because the new machine will increase overall income by $55.000 Step by Step Solution
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