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Machine Replacernent Decision A company is considering replacing an old plece of machinery, which cost $597,100 and has $349,800 of accumulated depreciation to date, with
Machine Replacernent Decision A company is considering replacing an old plece of machinery, which cost $597,100 and has $349,800 of accumulated depreciation to date, with a new machine that has a purchase price of $485,700. The old machine could be sold for $63,500. The annual variable production costs associated with the old machine are estimated to be $156,000 per year for eight years. The annual variable production costs for the new machine are estimated to be $100,100 per year for eight years. a. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter " 0 ". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (AIt. 1) or Replace Old Machine (Alt. 2) April 29 Revenues: Proceeds from sale of old machine (Alternative 1) (Alternative 2) (Alternative 2) Costs: Purchase price Variable productions costs ( 8 years) Income (Loss) Feedbizck Check My Wark
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