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New van Hartley's Meat Ples is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating
New van Hartley's Meat Ples is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow Existing van Original cost $50,000 $92,000 Annual operating cost $19,500 $14,000 Accumulated depreciation $34,000 Current salvage value of the existing van $25,500 Remaining life 9 years 9 years Salvage value in 9 years $0 $0 Annual depreciation $1778 $10,222 If Hartley's Meat Pies replaces the existing delivery van with the new one, over the next 8 years operating income will O A. decrease by $60.000 O A. decrease by $60,000 O B. decrease by $98,000 O C. increase by $60,000 OD. increase by $98,000
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