Question
need help with this one problem Vernon Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the
need help with this one problem
Vernon Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment Replacement Equipment Historical cost $ 109,000 Market price $ 112,000 Operating expenses* 111,000 Operating expenses* 113,000 Salvage value 29,000 Salvage value 16,000 Market value 56,000 Useful life 7 years Book value 36,000 Remaining useful life 7 years *The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment.
Required Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced? (only the correct please no ai)
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