Chudzick Company has a factory machine with a book value of $155,000 and a remaining...
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Chudzick Company has a factory machine with a book value of $155,000 and a remaining useful life of 6 years. A new machine is available at a cost of $247,000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $593,500 to $510,000. Prepare an analysis that shows whether Chudzick should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).) Keep Equipment Replace Equipment Net Income Increase (Decrease) Variable costs $ $ $ New machine cost $ $ The old factory machine should be
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