Question: Janko Wellspring Inc. has a pump with a book value of $28,000 and a 4-year remaining life. A new, more efficient pump, is available at

 Janko Wellspring Inc. has a pump with a book value of

Janko Wellspring Inc. has a pump with a book value of $28,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $49,000. Janko can also receive $8,400 for trading in the old pump. The new pump will reduce variable costs by $11,300 per year over its four-year life. Should the pump be replaced? Multiple Choice Yes, because income will increase by $4600 in total Yes, because income will increase by $4600 per year. No, because the company will be $4600 worse off in total. No, because income wit decrease by $11200 per year. No, Janko will record a lot of 516,800 they replace the pump

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