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Multiple Choice Question 148 Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old

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Multiple Choice Question 148 Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine Nen Mechine $710000 $376000 Price -0- Accumuleted Depreciation 112800 Remaining useful life 10 years -0- 10 years Useful life -0- $225600 Annual operating costs $300800 If the old machine is replaced, it can be sold for $36000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $75200 $39200 O $334000 $78000

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