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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $ 4 6 , 0 0
Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $ and a Req A
Req C and D
Compute the income increase or decrease from replacing the old machine with Machine B
Note: Amounts to be deducted should be indicated with a minus sign. c Should Lopez keep or replace its old machine?
d If the machine should be replaced, which new machine should Lopez purchase?
remaining useful life of four years. It can be sold now for $ Variable manufacturing costs are $ per year for this old
machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is four
years.
a Compute the income increase or decrease from replacing the old machine with Machine
b Compute the income increase or decrease from replacing the old machine 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?
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Req and
Compute the income increase or decrease from replacing the old machine with Machine A
Note: Amounts to be deducted should be indicated with a minus sign.
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