Question 5 of 6

Question S of 6 Johnson Enterprises uses a computer to handle its sales nvoices. Lately. tmsiness has been so good that it take-s extra 3 night. plus every third Saturday. to keep up with the volume Of sales invoices. Management is considering uxiating its with a tastr model that would eliminate all Of the Overtime processing. Original purchase cost depreciation Estimated annual operating costs Rernah-ine useful life Machine $1,'.500 $5 ooo 524.500 5 years Machine $24,500 $19,500 5 years If sdd rum the current machine Would have a salvage value of $9,500, if operated tor the remainder of its useful life. the curreM rnxNne would have zero salvage value. The new machine is expected to have Zero salvage value after 5 years. Prepue increnental analysis to determine wtwther the current machine should be replaced (In tifirst and any arnounts received as negative anunts In the third column. enter net r.tiw Enter 'Rive either a nqative mecedi'W ttr ea. 45 e-8. (4S)J Net Incr ease Replace Machine O-*rating costs Neu machine cost