Question: A machine with a book value of $49,000 has an estimated five-year life. A proposal is offered to sell the old machine for $30,000 and

A machine with a book value of $49,000 has an estimated five-year life. A proposal is offered to sell the old machine for $30,000 and replace it with a new machine at a cost of $64,000. The new machine has a five-year life with no . The new machine would reduce annual direct labor costs by $8,000. Provide a differential analysis on the proposal to replace the machine.

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