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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of four

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,200 per year for this machine. Information on two alternative replacement machines follows.

Alternative A Alternative B Cost $ 122,000 $ 119,000 Variable manufacturing costs per year 22,600 10,900

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?

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Complete this question by entering your answers in the tabs below. Alternative A Alternative B Xinhong Purchase Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Which option should Xinhong choose?)nhong Alternative A Alternative B Purchase Calculatethe total change in net income if Alternative B is adopted. {Cash outflows should be indicated by a minus sign.) Cost to buy new machine Cash received to irade in old machine Reduction in V3 nable manufacturing costs Total change in net income '3 0 Complete this question by entering your. answers in the 'tabs below. Alternative B Alternative A )nhong ' Purchase Calculatethe total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) Cost to buy new machine Cash received to trade in old machine Reducon in va n'able manufacturing costs Total change in net income $ 0

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