Chapter $10$ Case $1$

Arnold Company is considering purchasing new equipment to replace their old equipment. The pertinent information for the old equipment and the new equipment is as follows:

$\backslash$table$[[,$Old Equipment,New Equipment$],[$Original Cost,$82,000,183,000],[$Annual Variable Costs,,$],[$Materials$,55,000,48,000],[$Labor$,58,000,22,000],[$Annual Fixed Costs,$25,000,18,000],[$Remaining Life,$4$ years,$4$ years$],[$Salvage Value at end of life,$5,000,20,000],[$Salvage Value if sold now,$16,000,--],[$Required Return,$10\%,10\%$