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Janko Wellspring Incorporated has a pump with a book value of $34,000 and a four-year remaining life. A new, more efficient pump is availiable at
Janko Wellspring Incorporated has a pump with a book value of $34,000 and a four-year remaining life. A new, more efficient pump is availiable at a cost of $55,000. Janko can recelve $9,000 for trading in the old pump. The old machine has variable manufacturing costs of $35,000 per yea. The new pump will reduce vatiable costs by $13,000 per year over its four-year life. 5 hould the pump be replaced? Mulitiole Chaice Yes, becnuse income wil inerease 1.56000 in total tho, Janko wil record a iost of $16,000 if they rentice the kump. No. hechuve the company wit be 56.000 worse off in totol 15. becasise inconte will decrease by $13,000 per yest. Yus, tecause thsame willikeriase by 36.000 per ywat
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