Question: Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations

Lexigraphic Printing Company is considering replacing a machine that has been usedin its factory for four years. Relevant data associated with the operations

Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $89,070 Annual depreciation (straight-line) 8.915 Annual manufacturing costs, excluding depreciation 23,445 Annual non-manufacturing operating expenses 6105 Annual revenue 74,115 Current estimated selling price of machine 29,520 New Machine Purchase price of machine, six-year life $119.640 Re Annual depreciation (straight-line) 19,965 Estimated annual manufacturing costs, excluding depreciation 6.820

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