J&H Company has a router platform with a book value of $85,000 and a 3-year remaining life. A new router platform is available at a cost of $145,000, and J&H can also receive $18,000 for trading in the old router platform. The new router platform will reduce variable manufacturing costs by $33,000 per year over its three-year life. Should the router platform be replaced?

Multiple Choice

• Yes, as will increase income by $33,000 in total.

• No, it will decrease income by $28,000 in total.

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

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

• Yes, as the company will increase income by $28,000 total.