Question: Kendra Company is considering replacing an old machine. The old machine was purchased for $100300 and has a book rakie of $40,300 and should last

Kendra Company is considering replacing an old machine. The old machine was purchased for $100300 and has a book rakie of $40,300 and should last four more years with no salvage value. The company believes that in couid curtently sell the old mach of $20,300. The new machine cost $80,300 and will have a 4 year life and a $10,300 salvage value. Curtenty. it costs $20,300 annuatif to operate the old machine. The new machine is more efficient and should reduce operating cost by 50 sh. Baseld on quanititive analysis, should Kendra Company replace the old machine? Muitiple Cholce Yes, because the relevant cost of the new machine is $19,700 less than the old machine. No, because the relevant cost of the new machine is $9,100 more than the old machine. Yes, because the relevant cost of the new machine is $9,700 less than the old machine. Yes, because the relevant cost of the new machine is $19,700 less than the old machine. No, because the relevant cost of the new machine is $9,100 more than the old machine. Yes, because the relevant cost of the new machine is $9,700 less than the old machine. No, because the relevant cost of the new machine is $20,300 more than the old machine
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