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Sheridan Company has a factory machine with a book value of $150 , 000 and a remaining useful life of 4 years. A new machine
Sheridan Company has a factory machine with a book value of $150 , 000 and a remaining useful life of 4 years. A new machine is available at a cost of $245 , 000 . This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $590 , 000 to $490 , 000 . Prepare an analysis that shows whether Sheridan should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. ? 15 , 000 , ( 15 , 000 ) . ) The old factory machine should be
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