Repairing, retaining, or replacing equipment A business often has to decide whether to replace an asset or continue using it. As an example, let's look at A-Plus Airlines. Management must decide whether to replace old jets with new, more fuel-efficient ones. A jet originally cost $80 million and now has an Accumulated Depreciation balance of $65 million. It has a remaining useful life of four years, with no salvage value. The company is considering replacing this plane with a new Boeing 747, which would cost $110 million. If the new plane is acquired, variable manufacturing costs are expected to decrease from $10 million to $6 million annually, and the old unit could be sold for $5 million. The company's plan is to sell the 747 four years from now for $90 million. The incremental analysis for the four-year period