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Lopez Compary is considering replacing one of its old manufacturing mactines. The old machine has a book value of $48,000 and a remaining useful life
Lopez Compary is considering replacing one of its old manufacturing mactines. The old machine has a book value of $48,000 and a remaining useful life of five years. It can be sold now for 558.000 . Varlable manufactureng costs are $49.000 per year for this old madane Information on two ateinative replacement machines follows. The expected usefu iff of cach replacement machine is five years. (a) Compute the income increase or decrease from rephacing the old machine whth Machine A (b) Compute the income increase or decrease from replacing the oid machine with Maching b. (c) Shouid Lopez keep or replace its old machine? (d) If the machine should be replaced, which fiew machine should Loper parch lse? Complete this question by entering your answers in the tabs thelow. Compute the income increase or decrease fram replacing the old machine with Machine A. IMnourta to be deducted ahould be. indicoted with on minys uioniy Lopez Company is considering replacing one of its old manufacturing machines. The oid machine has a book value of $48.000 and a remaineng useful ife of tive years. It can be soid now for $58,000. Vatiable manulacturing costs are $49,000 per year for this old machine. Information on two altematwe replacement machines follows. The expected useful life of each replacement machine is five yeats (o) Compute the income increase or decrease from replacing the old machine winh 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 mach ne should Loper. purchase? Complete this question by entering your answers in the tabs below. indicated with a minus sigot.) Lopez Company is considering replacing one of 7 s old manutacturing machines. The old machine has a book value of $48,000 and a remaining useful life of five years it can be sold now for $58.000. Variable manufacturng costs are $49.000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years: (o) Compute the income increase or decrease from replacing the old machine wath Machine A. (b) Compute the income inceease or decrease from replacing the old machine with Machine Bi (c) Shokuld 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. (c) Should Lopez Keep or replace its old machine? (d) It the mactine should be replaced, which new machine should topez purthase
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