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Please explain your answer in a legible manner. Thank you so much for your time !!! Exercise 23-12 Keep or replace A1 xinhong Company is

Please explain your answer in a legible manner. Thank you so much for your time !!! image text in transcribed
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Exercise 23-12 Keep or replace A1 xinhong Company is considering replacing one of its manufacturing machines. The machine h a book value of $45,000 and a remaining useful life of 5 years, at which time its salvage value will be It has a current market value of $52,000. Variable manufacturing costs are $36,000 per year for this machine Information on two alternative replacement machines follows. Should xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should xinhong purchase? Alternative A Alternative B $I15,000 Cost $125,000 Variable manufacturing costs per year 19,000 15.000

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