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Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $602,500 and has $348,400 of accumulated depreciation to date, with
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $602,500 and has $348,400 of accumulated depreciation to date, with a new machine that has a purchase price of $485,300. The old machine could be sold for $65,000. The annual variable production costs associated with the old machine are estimated to be $157,700 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,100 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "o". If required, use a minus sign to indicate a loss Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old Old Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs Purchase price Variable productions costs (8 years) Profit (Loss) a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine b. What is the sunk cost in this situation? Check My Workmore Check My Work uses remaining Previous Next > Email Instructor Save and Submit Assignment for Grading ring a warning resource from Cengage Lear... C For The Past Year, WooCorp Has Experimented with 1 Chegg.com eBook Show Me How Calculator A company is considering replacing on 16 piece of machinery, which COSE SUZUU and 15800 Occumulated bepreciation to oste, wich a new machine that has a purchase price of $485,300. The old machine could be sold for $65,000. The annual variable production costs associated with the old machine are estimated to be $157,700 per year for eight years. The annual variable production costs for the new machine are estimated to be $99, 100 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "o". If required, use a minus sign to indicate a loss Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old Old Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs: Purchase price Variable productions costs (8 years) Profit (Loss) 2.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine b. What is the sunk cost in this situation? The sunk cost is Check My Work more Check My Work uses remaining Email instructor Save and Exit Submit Assignment for Grading
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