question 20

Current Attempt in Progress Sheffield Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: NE Old Machine $310000 93000 Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs 10 years $245000 If the old machine is replaced, it can be sold for $24800. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is O $(6200) O $(62000) $-5200 $24500 20 of 30 -/5 Current Attempt in Progress Sheffield Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: ad Depreciation useful life Old Machine $310000 93000 10 years -0- $245000 New Machine $620000 -0- -0- 10 years $186000 rating costs If the old machine is replaced, it can be sold for $24800. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $(6200) $(62000) $-5200 $24500