Bonita Industries is contemplating the replacement of an old machine with a new one. The...
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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $344000 $680000 Accumulated Depreciation 103200 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $275200 $206400 If the old machine is replaced, it can be sold for $32000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is
A. $36800
B. $68800
C. $336000
D.$40000
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