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Nguyen Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $4,800

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Nguyen Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $4,800 $5,600 $2,100 0 - Purchase price Accumulated depreciation Annual operating costs Remaining useful life $5,100 $3,900 10 years 10 years If the old machine is replaced, it can be sold for $2,300. Both the old equipment and new equipment have a useful life of 10 years. What is the net advantage (disadvantage) of replacing the old machine with the new machine? O ($8,700) ($6,400) $6,400 0 $8,700

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