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I'm stuck, please help! Keep or Replace Machine: Skiles Corporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding

I'm stuck, please help!

Keep or Replace Machine:

Skiles Corporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and finishing machine for over 10 years and believes that it may be time to replace the machine. The company is trying to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine.

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Old Machine: Original cost $437,500 Current accumulated depreciation 336,700 Estimated annual variable manufacturing costs for machine 73,050 Estimated selling price of machine 168,100 Estimated remaining useful life (in years) 6 New Machine: Purchase cost $795,100 Estimated annual variable manufacturing costs for machine 50,850 Estimated residual value O Estimated useful life (in years)

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