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Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $208000 62400 10
Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $208000 62400 10 years 0 $166400 New Machine $410000 0- Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs 10 years $124800 If the old machine is replaced, it can be sold for $15000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $202000 $26600 $21000 $41600
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