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Oriole Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price

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Oriole Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $306000 $606000 Accumulated Depreciation 91800 Remaining useful life 10 years Useful life -0- 10 years Annual operating costs $244800 $184800 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is O A. $18000 O B. $24480 c. $(60600) OD. $(6060)

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