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Analysis showing whether carl should retain old or buy new

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Point 1: Carl moving Ltd cut lawns,it has riding lawnmover with book value 5000 and remaining useful life 5 years. A new lawn mover is available with cost $15000.The useful life of new machines is 5 years. Carl estimates that new machine allow her to cut more lawns and increase revenue from 20000 per year to 22000 and reduce variable cost from 12000 to 10500.

Question 1: Prepare an analysis showing whether Carl should retain the old or buy new?

Reference no: EM132514778

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