Lopez Company Is considering replacing one of Its old manufacturing machines. The old machine has a book value of $$48,000$ and a

remaining useful life of four years. It can be sold now for $$58,000.$ Varlable manufacturing costs are $$44,000$ 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 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?

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