MC Qu. 44 Trail Power has been using the same machines... Trail Power has been using the same machines to make its name brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $220,000. The old machines presently have a book value of $122,000 and a market value of $14,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $120,000 and have operating expenses of $17,000 a year. The new machines are expected to have a five-year useful life and no salvage value. The operating expenses associated with the old machines are $32,000 a year. The new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $12,000 a year. Select the true statement. The company will be $30,000 better off over the 5-year period if it keeps the old equipment. The company will be $44,000 better off over the 5-year period if it keeps the old equipment. The company will be $29,000 better off over the 5-year period if it replaces the old equipment. The company will be $14,000 better off over the 5-year period if it replaces the old equipment. References Multiple ChoiceMC Qu. 44 Trail Power has been using the same machines... Ask your instructor a question