Question

12)Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33,700 per year for this machine. Information on two alternative replacement machines follows.
 Alternative AAlternative B  Cost$115,000 $116,000   Variable manufacturing costs per year 22,600  10,700 
Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) 
Calculate the total change in net income if Alternative B is adopteTop AnswerView the full answer

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"