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TB MC Qu. 13-101 Denny Corporation is considering... Denny Corporation is considering replacing a technologically obsolete machine with a new state of the art numerically

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TB MC Qu. 13-101 Denny Corporation is considering... Denny Corporation is considering replacing a technologically obsolete machine with a new state of the art numerically controlled machine. The new machine would cost S160000 and would have a ten year useful life Unfortunately, the new machine would have no salvage value The new machine would cost $22.000 per year to operate and maintain, but would save $52,000 per year in labor and other costs. The old machine can be sold now for scrap for $16.000. The simple rate of return on the new machine is closest to anore income taxes)

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