Acct301

ezto.mheducation.com/ext/map/index.html Week 5: Homeworki Saved 6 A machine purchased three years ago for $318,000 has a current book value using straight-line depreciation of $175,000; Its operating expenses are $35,000 per year. A replacement machine would cost $223,000, have a useful life of eleven years, and would require $12,000 per year In operating expenses. It has an expected salvage value of $78,000 after eleven years. The current disposal value of 5 the old machine is $90,000; If it is kept 11 more years, Its residual value would be $12,000. points Required Calculate the total costs In keeping the old machine and purchasing a new machine. Should the old machine be replaced? Book Keep Old Purchase New Machine Machine Total costs Hint Should the old machine be replaced? Ask Print References