#4 Please Help

Mounzath Gear has been using the same mochenes to moke is name brand clothung for the last five years. A cost ethiciency consultant hys suggested thot producticn coss may be reduced by purchasang more technologically advanced mochinery. The olid mochines cost the company $270,000. The old mochines ptesenty hwe a book value of $123000 and a maket value of \$15,000. They are expected to have ofweyeat tenaining Me and zero satvage vatue. The new machines would cost the company $130000 and have operating expertes of Siz.000 a yeat expected to incresse qualify. justrying a price increase and thereby increasing soes tevenue by $1,000 a year Select the true statement. Miatple Chotce: The compary wi be 546,000 beter off over the 5 year period tit keupe tee dif tevemane. The comsany we be 525,000 beser off over the 5 vest benod if it repiaces the oid esuement. Mountain Gear has been using the same machines to make its name-brand clothing tor the last five yeass. A cost ethiciency consutant has suggested that production costs may be reduced by purchating more technologically advariced mochinery. The old machines cost the company 5220,000 . The old machines presently have a book value of 5 tiz3,000 and s market waluc of 515,000 . They are expected to have a fye-ycar remaining lde and reyo salvage value. The new machines would cost the company 5130.000 and have operating expenses of 518,000 a yeat. Dhe new machines are expected to have a five-yeaf useful life and no savage value The operating expenses associated weh the old machines are $33.000 a yeat The new machines ate expected to increase quality. justifying a price increase and theyeby increasing sales revenue by 513,000 a year. Select the the statement. Mitighachoice. The compeny wis be 5:5.000 bether at over the 5 year period if respiaces the old equisment