Granfield Company has prece of manufacturing equipment with a book Value of $38,500 and a...
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Granfield Company has prece of manufacturing equipment with a book Value of $38,500 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 $21,700. Granfield can purchase a new machine for $117.000 and receive 521700 in return for trading in its old machine. The new machine wil reduce variable manufacturing costs by $18,700 per year over the four year life of the new machine. The total increase or decrease in net income by replacing the current machine with the bew machine ignoring the time value of money is Multiple Choice o 520 500 increose o 574 800 decrease o $16.800 decrease o 350.950 increase o 520 500 decrease
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