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Please answer these Vaughn Company has a factory machine with a book value of $158,000 and a remaining useful life of 6years. A new machine
Please answer these
Vaughn Company has a factory machine with a book value of $158,000 and a remaining useful life of 6years. A new machine is available at a cost of $245,000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $591,500 to $496,000. Prepare an analysis that shows whether Vaughn should retain or replace the old machine. {lfan amountreduces the net income then enter with a negative Sign preceding the number or parenthesis, e3. -15,000, (15,000).) Net Income Keep Re pl ace In crease Equipment Equipment {Decrease} Variable costs $ $ $ New machine cost $ $ $ The old factory machine should be vStep by Step Solution
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