J&H Company has a router platform with a book value of $68,000 and a three-year remaining life. A new router platform is available at a cost of $128,000, and J&H can receive $16,300 for trading in the old router platform. The old router platform has variable manufacturing costs of $54,000 per year. The new router platform will reduce variable manufacturing costs by $31,300 per year over its three-year life. Should the router platform be replaced?

Multiple Choice

Yes , as it is always important to have current technology.

No, it will decrease income by $17,800 in total.

J & H will be not be better or worse off by replacing the router platform.

Yes, as will increase income by $31,300 in total.

Yes, as the company will increase income by $17,800 total.