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The old factory machine should be retained or replaced? Question 9 of 10 Current Attempt in Progress -/1 Tamarisk Company has a factory machine with
The old factory machine should be retained or replaced?
Question 9 of 10 Current Attempt in Progress -/1 Tamarisk Company has a factory machine with a book value of $159,000 and a remaining useful life of 5 years.A new machine is available at a cost of $246,500. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $603,500 to $499,000. Prepare an analysis that shows whether Tamarisk should retain or replace the old machine. ('fan amountreducesthenetincomethen enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000),) Keep Equipment Variable costs New machine cost Replace Equipment Net Income Increase (Decrease)
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