Question: Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $675,000 and has $380,000 of accumulated depreciation to date, with
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $675,000 and has $380,000 of accumulated depreciation to date, with a new machine that has a purchase price of $925,000. The old machine could be sold for $300,000. The annuat variable production costs associated with the old machine are estimated to be $85,000 per year for 8 years. The annual variable production costs for the new machine are estimated to be $25,000 per year for 8 years. a.1 Prepare a differential analysis dated December 10 to determine whether to contiriue with (Aiternative 1 ) or replace (Aiternative 2) the old machine. If an amount is zero, enter 0. If required, use a minus sign to indicate a loss
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