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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $ 4 5 , 0 0

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variable manufacturing costs are $36,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years.
\table[[Purchase price,Machine A,Machine B],[Variable manufacturing costs per year,115,000,$125,000
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