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I need help with this Lopez Company is considering replacing one of its old manufacturing machines. The old machune hari a book value of $48,000
I need help with this
Lopez Company is considering replacing one of its old manufacturing machines. The old machune hari a book value of $48,000 and a remaining useful iffe of five years it can be sold now for $58,000. Variable manufacturing costs are $44,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful iffe of each replacement machine is five 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 machne 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. Compute the income increase or decrease from replacing the old machine with Machine A. Acnounts to be deducted should be indicared with a minus sign.) Step by Step Solution
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