PART C$/$ D $-$ Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a

book value of $$46,000$ and a remaining useful life of four years. It can be sold now for $$56,000.$

Variable manufacturing costs are $$49,000$ per year for this old machine. Information on two alternative

replacement machines follows. The expected useful life of each replacement machine is four years.

$($a$)$ Compute the income increase or decrease from replacing the old machine with Machine A$.$

$($b$)$ Compute the income increase or decrease from replacing the old machine with Machine B$.$

$($c$)$ Should Lopez keep or replace its old machine?

$($d$)$ If the machine should be replaced, which new machine should Lopez purchase?

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Req B

Req C and D

$($c$)$ Should Lopez keep or replace its old machine?

$($d$)$ If the machine should be replaced, which new machine should Lopez purchase?

$($c$)$ Should Lopez keep or replace its old machine?

$($d$)$ Which new machine should Lopez purchase?Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $$46,000$ and a remaining useful life of four years. It can be sold now for $$56,000.$ Variable manufacturing costs are $$49,000$ per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is four years.