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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 4

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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $52.000 Variable manufacturing costs are $33,300 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B $110,000 1e,600 Cost $116,e00 Variable manufacturing costs per year 22,200 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? if the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Xinhong Purchase Alternative A Alternative B Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Next Next 4 of 4

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