Question: help me! Machine Replacement Decision A compary is considering repladino an old plece of machlnery, which cost $593,800 and has $351,100 of accumulated depreclation to
Machine Replacement Decision A compary is considering repladino an old plece of machlnery, which cost $593,800 and has $351,100 of accumulated depreclation to date, with a new machine that hat a purchase price of $484,200. The old machine could be sold for $54,800, The annual variable production costs assodiated with the old machine are estimated to be $157,700 per year for 8 years. The annual variable production costs for the new machine are estimated to be $101,300 per year for \& years: a.1 Prepare a differential analysh dated December 10 to determine whether to continue with (Atemative 1 ) or replace (Atemative 2) the old machine. If an ameunt is aro, enter "0. If required, use a minus sign to indicate a loss. Differential Analysis a.2 Determine whether to continue with (Aternative 1) or replace (Aternative 2) the did machine. b. What is the suni cost in this situation? The sunk cost is 4
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
