c Lopez company is considering replacing one of tis old manufactuing...
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Lopez company is considering replacing one of tis old manufactuing mochines. The old machine has a book value of srarcoo and a remaining useful life of five years. It can be sold now for $56.000. Variable manutacturing costs are $48.000 per year for this old machine information on two alternative ieplacement machines tollows. The expected usefut life of each replacerpent machine is five years. (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.)
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