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Question 9 of 10 View Policies Current Attempt in Progress Variable costs < Pharoah Company has a factory machine with a book value of $169,000

Question 9 of 10 View Policies Current Attempt in Progress Variable costs < Pharoah Company has a factory machine with a book value of $169,000 and a remaining useful life of 6 years. A new machine is available at a cost of $246,500. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $595,000 to $495.000. New machine cost Prepare an analysis that shows whether Pharoah should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) $ $ Keep Equipment The old factory machine should be 69 $ $ Replace Equipment -/1 69 III Net Income Increase (Decrease)

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