Question: Exercise 10-10 (Algo) Keep or replace LO P5 Lopez Compony is considering replacing one of its old manutacturtng machines The old machine has a book
Exercise 10-10 (Algo) Keep or replace LO P5 Lopez Compony is considering replacing one of its old manutacturtng machines The old machine has a book value or $49,000 and a remaining useful iffe of four years it can be sold now for $59,000. Voribble manufacturing costs are $46,000 per yeor for this oid machine. Information on two alternative replacement machines follows. The expected useful iffe of each replacement machine is four years (o) Compute the income increase of decreose from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Mochine B (c) Should Lopez keep or replace ts old machine? (d) If the machine should be replaced. Which new machine should topez purchase? Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minas ogn.)
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