Question $1-$ Keep or Replace

Marks $9$

Evett Corporation uses a machine that winds twine onto spools.

The machine is unreliable and results in a significant amount of downtime and excessive labour costs.

The management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labour costs.

Data are presented below for the two machines:

$\backslash$table$[[,$Old Machine,New Machine$],[$Original purchase cost,$$160,000,$$$240,000$