Question: Exercise 20-14 Wour answer is correct. johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes

Exercise 20-14 Wour answer is correct. johnson
Exercise 20-14 Wour answer is correct. johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday. to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Original purchase cost $15.000 $25,000 Accumulated depreciation $ 6.000 _ Estimated annual operating costs $25,000 $20.000 Useful life 5 years 5 years If sold now. the current machine would have a salvage value of $6.000. If operated for the remainder of its useful life. the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. (45).) . $ $ $ Operatm C05\" 125000 100000 25000 New machine cost 0 25000 -25000 Salvage value (old) 0 6000 6000

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