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Machine Replace ment Decision Your company has an old machine with a net book value of $5,000, a five-year remaining useful life, and annual operating

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Machine Replace ment Decision Your company has an old machine with a net book value of $5,000, a five-year remaining useful life, and annual operating costs of $4,000. You can sell the old machine for $2,000. CLD CosT -(8Oa00 e.0oc A new machine costs $18,000, will last five years, and has annual operating costs of $1,500. A/ Prepare an analysis to determine whether your company should replace the old machine. Net Boa VaLue Should the machine be replaced? Yes/ No

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