Question: Dragoo Building Inc. has a crane with a book value of $248,000 and a 4-year remaining life. A new crane is available at a cost

Dragoo Building Inc. has a crane with a book value of $248,000 and a 4-year remaining life. A new crane is available at a cost of $623,000. Dragoo can also receive $48,800 for trading in the old pump. The new crane will reduce variable costs by $146,100 per year over its four-year life. The total impact to Dragoo over the cranes four-year life is:

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