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residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations: Annual net differential decrease in
residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations: Annual net differential decrease in costs and expenses-new machine b. Based only on the data presented, should the proposal be accepted? c. What are some of the other factors that should be considered before a final decision is made? 1. Do present and proposed operations provide the same capacity? 2. What are the opportunity costs associated with alternative uses of the $134,900 outlay required to purchase the automatic machine? 3. Is the product improved by using automatic machinery? 4. What is the book value of the manually operated machine that will be replaced? Select the relevant factor(s) from the list above
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