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please help! Management of Plascencia Corporation is considering whether...

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Accounting

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Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512.000 or a new model 220 machine costing $408,000 to replace a mochlne that was purchased 12 years ago for $45$,000. The oid machine was used to make product 1434. until it broke down last week Unfortunately, the old machine cannot be repaired. Manageinent has decided to biry the new model 220 machine. It has fess capacity than the new model 370 machine, but its capacity is sufficient to continue making ptoduct 143L. Management also considered, but rejected, the alternatve of simply diopplng product 143L If that were done, instead of imvesting $408,000 in the new machire, the money could be invested in a project that would return a totat of $57,000. In making the dechion to buy the model 220 machine rather than the model 370 machine, the differential cost was: Mulnple Choice $57000 $47000 $104000 $30,000

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