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Marigold Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Marigold Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $330000 $610000 Accumulated Depreciation 120000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $280000 $181600 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is $(61000) $(6100) $28000 $398000
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