O5. due by 1145pm est usa

Skeller is using an old machine in it's printing operations. The machine cost400000many years ago. Accumulated depreciation on the machine is160000. Skeller is currently recording24000of depreciation each year on the machine. The machine will likely last 10 more years but only if Skeller spends32000per year on maintenance. In 10 years Skeller can likely sell the machine for2000. Today, the machine is worth48000. Skeller is considering buying a new machine to replace the old one. The new machine will cost700000. Skeller plans to keep the machine 10 years. It can sell the new machine for95000at that point. Skeller will depreciate the new machine using straight-line depreciation at the rate of60500per year. ([700000-95000]/10 =60500) The new machine would allow Skeller to expand services. Skeller estimated they would increase their contribution margin by28000per year. Ignoring taxes and time value of money- and based only on the estimates above, compute the difference in costs over the next 10 years given the two alternatives.

Which alternative is preferable (has the lower total cost). Type Keep or Replace

How much is the cost of the preferable alternative lower than the other alternative? Enter as a positive number.