M Inbox - information@evolvix PD Madison Springs Conference X HST HST Calculator / Harmonize X D2L McGraw-Hill Connect - 22F X Question 1 - Module 10 - C X Course Hero X + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 10 - Chapter 9 Saved Help Save & Exit Submit Check my work Keep Old Buy New Machine Machine Difference 10 O points + Book Total expenses Print References 2. Compute the net advantage of purchasing the new machine using only relevant costs in your analysis. (Do not round intermediate calculations.) of purchasing the new machine 3. What is the minimum saving in annual operating costs that must be achieved in order for the president to consider buying the new machine? Minimum saving in costs ED Mc Hill Type here to search O EN 0'C Cloudy 0 4X ENG 5:01 PM 11/16/2022M Inbox - information@evolvix PD Madison Springs Conference X HST HST Calculator / Harmonize X DZL McGraw-Hill Connect - 22F X Question 1 - Module 10 - C X Course Hero X + X C https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F... A Q Sign in . . . Module 10 - Chapter 9 Saved Help Save & Exit Submit Check my work Santosh Plastics Inc. purchased a new machine one year ago at a cost of $120,000. Although the machine operates well and has five more years of operating life, the president of Santosh Plastics is wondering if the company should replace it with a new electronic machine that has just come on the market. 10 O points The new machine costs $180,000 and is expected to slash the current annual operating costs of $84,000 by two-thirds. The new machine is expected to last for five years, with zero salvage value at the end of five years. The current machine can be sold for $20,000 if the company decides to buy the new machine. The company uses straight-line depreciation. + Book In trying to decide whether to purchase the new machine, the president has prepared the following analysis: Book value of the old machine $100, 000 Print Less: Salvage value 26,060 Net loss from disposal $ 80,000 References 'Even though the new machine looks good," said the president, "we can't get rid of that old machine if it means taking a huge loss on it. We'll have to use the old machine for at least a few more years." Sales are expected to be $420,000 per year, and selling and administrative expenses are expected to be $252,000 per year, regardless of which machine is used. Required: 1. Prepare a comparative income statement covering the next five years, assuming: . The new machine is not purchased. . The new machine is purchased. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) 5 Years Summary Keep Old Buy New Machine Machine Difference ED IT . . Mc Hill Type here to search O Hi W EN 0'C Cloudy 0 4X ENG 5:01 PM 11/16/2022