Question: Please complete this problem. The second picture is how it needs to be layed out. Thank you! Exercise 6-18B Asset replacement decision Orr Electronics purchased

Please complete this problem. The second picture is how it needs to be layed out. Thank you!  Please complete this problem. The second picture is how it needs
to be layed out. Thank you! Exercise 6-18B Asset replacement decision Orr

Exercise 6-18B Asset replacement decision Orr Electronics purchased a manufacturing plant four years ago for $4.500,000. The plant costs $1,000,000 per year to operate. Its current book value using straight-line depreciation is $3,500,000. Orr could purchase a replacement plant for $8,000,000 that would have a useful life of 10 years. Because of new technology, the replacement plant would require only $300,000 per year in operating expenses. It would have an expected salvage value of $2,000,000 after 10 years. The current disposal value of the old plant is $600,000, and if Orr keeps it 10 more years, its residual value would be $150,000. Required Based on this information, should Orr replace the old plant? Support your answer with appropriate computations. Problem -18B Keep Old Machine Buy New Machine Costs Totals Differential Conclusion

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