Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $$49,000$ and a remaining useful life of five years. It can be sold now for $$59,000.$ Variable manufacturing costs are $$47,000$ per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years.

$\backslash$table$[[$Purchase nrice,Machine A$,$Machine B$],[$Variable manufacturing costs per vear,$\backslash$table$[[$$ $121,000],[20,000]],\backslash$table$[[$$ $134,000]]]]$

$($a$)$ Compute the income increase or decrease from replacing the old machine with Machine $A.$

$($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?

Complete this question by entering your answers in the tabs below.

Req A

Req B

Req C and D