Question: Janko Wellspring incorporated has a pump wth a book value of $26,000 and a four-year remaining life. A new, more efficient pump is available at

 Janko Wellspring incorporated has a pump wth a book value of

Janko Wellspring incorporated has a pump wth a book value of $26,000 and a four-year remaining life. A new, more efficient pump is available at a cost of $47,000. Janko can receive $8,200 for trading in the old pump. The old machine has variable manufacturing costs of $27,000 per year. The new pump will reduce variable costs by $11,100 per year over its four-year life. Should the pump be replaced? Multiple Choice No, becouse income will decrease by 511,100 per yeat. No, Janko wa record a loss of $16,400 if they replace the pump. No, because the company will be $5.600 worse off in total Yes, because income will inctease by $5,600 por yoac Yes, because income will increase by $5,600 in total

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