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Question Two (40 Points) Avaya Company is thinking to replace a three year old loader with a new one that is more efficient. The following

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Question Two (40 Points) Avaya Company is thinking to replace a three year old loader with a new one that is more efficient. The following information was provided by the Company: New loader List price $17,000 Annual operating expenses 55,000 Expected life in years Old loader Original cost $120,000 Remaining book value 35,000 Disposal value now 8,000 Annual variable expenses 78,000 Remaining life in years 1 1 Should the company replace or keep the old loader (Show your calculations)

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