Question: QUESTION 24 Cool Company is considering replacing a machine that is presently used in the production of its product. The following data are wailable Replacement
QUESTION 24 Cool Company is considering replacing a machine that is presently used in the production of its product. The following data are wailable Replacement ON Machine Machine Original cost $295,000 S188,000 Useful life in years 11 Current age in years 6 0 Book value $130.000 Disposal value now 352,000 Disposal value in 5 years 0 Annual cash operating costs $39,000 $24,000 What should Cool Company do? Keep and save $61,000 Replace and we $61,000 Keep and save $113,000 Replace and save 5113,000
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