Granfield Company has a piece of manufacturing equipment with a book value of $35,500 and...
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Granfield Company has a piece of manufacturing equipment with a book value of $ and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $ Granfield can purchase a new machine for $ and receive $ in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $ per year over the fouryear life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine ignoring the time value of money is:
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