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Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price$300,000$600,000Accumulated

Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine

New Machine

Price$300,000$600,000Accumulated Depreciation90,000-0-Remaining useful life10 years-0-Useful life-0-10 yearsAnnual operating costs$240,000$180,600

If the old machine is replaced, it can be sold for $24,000.

The net advantage (disadvantage) of replacing the old machine is

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