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the bottles, assuming ieu tuu OBJ. 1 374 PE 9-4A Replace equipment A machine with a book value of $126,000 has an estimated six-year life.

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the bottles, assuming ieu tuu OBJ. 1 374 PE 9-4A Replace equipment A machine with a book value of $126,000 has an estimated six-year life. A proposal is off ered to sell the old machine for $84,000 and replace it with a new machine at a cost of 00. lne new machine has a six-year life with no residual value. The new machine reduce annual direct labor costs from $55,000 to $43,000. Prepare a differential ruary 18 on whether to continue with the old machine (Alternative 1) would analysis dated Feb or replace the old machine (Alternative 2). OBJ.1

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