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  3. falk inc. has a machine with a book value of $50,0

Falk Inc. has a machine with a book value of $50,000 and a five-year remaining...

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Accounting

Falk Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and Falk can also receive $38,000 for trading in the old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced? no, because the income will decrease by $27,000 per year yes, because income will increase by $14,000 per year yes, because income will increase by $23.000 in total no, because the company will be $23,000 worse off in total

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