Question: Current Attempt in Progress Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: New

 Current Attempt in Progress Coronado Industries is contemplating the replacement of

Current Attempt in Progress Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: New Machine Old Machine $260000 $520000 Price Accumulated 78000 -0- Depreciation Remaining useful life 10 years -0- Useful life -0 10 years Annual operating $156000 $215000 costs If the old machine is replaced, it can be sold for $20800. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $21500 $90800 $(52000) $(5200)

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