Prepare an analysis showing old machine should be retained

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Question - Being  Company  has a factory machine with a book value of $90,000 And a remaining useful life of 5 years.  The machine can be sold for $30,000.  A new machine is available at a cost of $400,000.  This machine will have a useful life of 5 years with no salvage value.  The newer machine will lower variable manufacturing costs from $600,000 to $500,000. Prepare an analysis showing whether the old machine should be retained or replaced.

Reference no: EM131736950

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