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Machine Replacement Decision A company is considering replacing an old plece of machinery, which cost $600,900 and has $349,000 of sccumulated depreciation to date, with

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Machine Replacement Decision A company is considering replacing an old plece of machinery, which cost $600,900 and has $349,000 of sccumulated depreciation to date, with a new machine that has a purchase price of 5486,100. The old machine could be sold for $63,600. The annual variable production costs associated with the old machine are estimated to be $158,400 per year for eight years. The annual variable production costs for the new machine are estimated to be $102,400 per year for eight years. . Prepare a differential analysis dated Apr 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is moro, enter 'o'. For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 29 Continue Replace Differential with Old Old Effect Machine Machine on Income (Alternative 1) (Alternative 2) (Alternative 2) Priceeds from sale of old machine Casts Purchase price Varable productions costs (8 years) Income () 0 000 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine, b. What is the sun cost in this situation? The suco Sell ar Process further Jackson Lumber Company incurs a cost of $376 per hundred board feet (htin) in processing certain "rough-cut lumber, which tills for 570 per hot. An alternative is to produce a "finished cut" at a total processing cost of $522 per hot, which can be sold for $780 per not Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Sell Process Differential Rough-Cut Further into Effect (Alternative 1) Finished Cut on Income (Alternative 2) (Alternative 2) Revenues, per 100 board it Costs, per 100 board it Income (L48), per 100 board ft. Determine whether to sell rough-cut lumber (Nternative 1) or process further into finished-cut lumber (Alternative 2)

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