A company is considering replacing an old piece of machinery, which cost $105,000 and has...
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Accounting
A company is considering replacing an old piece of machinery, which cost $105,000 and has $55,000 of accumulated depreciation to date, with a new machine that has a purchase price of $83,000. The old machine could be sold for $56,300. The annual variable production costs associated with the old machine are estimated ta be 58,500 per year for eight years. The annual variable producbon costs for the new machine are estimased to be $5,000 per year for eight years. Required: A Prepare a diffemential analyzis dated Apoil 29 to determine whether to continue with (Allemative 1) or replace (Aiternative 2) the aid machine. Refer to the ists of Labels and Amount Descriptions for the exact wording of the answer choices for fext entries. Be sure to complete the statement hedding. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter " O ', A colon () will automatically appear if required. B. Determine whether the company should contnue wht (Allemative 1) or replace (Altemative 2) the old machine. C. What is the sunik cost is this situation? Differential Analysis Differential Analysis Score: 75/93 Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2) (tabel)


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