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Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered:
| Old Machine | | New Machine |
Price | $350000 | | $630000 |
Accumulated Depreciation | 120000 | | -0- |
Remaining useful life | 10 years | | -0- |
Useful life | -0- | | 10 years |
Annual operating costs | $251000 | | $187600 |
If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is
a. $25100
b. $(6300)
c. $28000
d. $(63000)
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