A company purchased manufacturing equipment $5$ years ago for $$50,000.$ Book value is currently $$5,000$ and the remaining useful life is $3$ years. The equipment incurs variable manufacturing costs of $$30,000.$ The company is considering replacing the equipment. The new equipment will cost $$75,000,$ have a useful life of $3$ years, and is more efficient and, therefore, only costs $$10,000$ in variable manufacturing costs to operate each year. The vendor is willing to accept the old equipment with a selling price of $$20,000.$ The company should:

replace the old equipment because the total net decrease in income will be $$5,000$

keep the old equipment because replacing it will decrease income by $$5,000$ if they purchase the new equipment

keep the old equipment because the total net increase in income will be $$5,000$

replace the old equipment because the total net increase in income will be $$5,000$

A company purchased manufacturing equipment $5$ years ago for $$50,000.$ Book value is currently $$5,000$ and the remaining useful life is $3$ years. The equipment incurs variable manufacturing costs of $$30,000.$ The company is considering replacing the equipment. The new equipment will cost $$75,000,$ have a useful life of $3$ years, and is more efficient and, therefore, only costs $$10,000$ in variable manufacturing costs to operate each year. The vendor is willing to accept the old equipment with a selling price of $$20,000.$ The company should:

replace the old equipment because the total net decrease in income will be $$5,000$

keep the old equipment because replacing it will decrease income by $$5,000$ if they purchase the new equipment

keep the old equipment because the total net increase in income will be $$5,000$

replace the old equipment because the total net increase in income will be $$5,000$

A company purchased manufacturing equipment $5$ years ago for $$50,000.$ Book value is currently $$5,000$ and the remaining useful life is $3$ years. The equipment incurs variable manufacturing costs of $$30,000.$ The company is considering replacing the equipment. The new equipment will cost $$75,000,$ have a useful life of $3$ years, and is more efficient and, therefore, only costs $$10,000$ in variable manufacturing costs to operate each year. The vendor is willing to accept the old equipment with a selling price of $$20,000.$ The company should:

replace the old equipment because the total net decrease in income will be $$5,000$

keep the old equipment because replacing it will decrease income by $$5,000$ if they purchase the new equipment

keep the old equipment because the total net increase in income will be $$5,000$

replace the old equipment because the total net increase in income will be $$5,000$

A company purchased manufacturing equipment $5$ years ago for $$50,000.$ Book value is currently $$5,000$ and the remaining useful life is $3$ years. The equipment incurs variable manufacturing costs of $$30,000.$ The company is considering replacing the equipment. The new equipment will cost $$75,000,$ have a useful life of $3$ years, and is more efficient and, therefore, only costs $$10,000$ in variable manufacturing costs to operate each year. The vendor is willing to accept the old equipment with a selling price of $$20,000.$ The company should:

replace the old equipment because the total net decrease in income will be $$5,000$

keep the old equipment because replacing it will decrease income by $$5,000$ if they purchase the new equipment

keep the old equipment because the total net increase in income will be $$5,000$

replace the old equipment because the total net increase in income will be $$5,000$

A company purchased manufacturing equipment $5$ years ago for $$50,000.$ Book value is currently $$5,000$ and the remaining useful lif