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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
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 | $600,000 |
| Accumulated Depreciation | 90,000 | -0- |
| Remaining useful life | 10 years | -0- |
| Useful life | -0- | 10 years |
| Annual 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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