What the total increase or decrease in net income

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Question - Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of three years. At the end of the three years the equipment will have a zero- salvage value. Reiner can sell the old machine now for $32,000 and can purchase a new machine for $145,000. The old machine has variable manufacturing costs of $50,000 per year. The new machine will reduce variable manufacturing costs by $27,000 per year over the three-year life of the new machine. What the total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money)?

Reference no: EM133168690

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