Homework?

Johnson Enterprises uses a computer to handle its sales invoices Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices Management is considering updating its computer with a faster model that would eliminate all of the overtime processing Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining ustite Current Machine New Machine $15,000 $25,000 $6,000 $25.000 $20,000 5 years 5 years It sold now, the current machine would have a salvage value of $6,000. If operated for the remainder of its useful life the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts in the third column,enternet Income increases as positive amounts and decreases en negative amounts. Enter negative amounts using either a negative sign preceding the number as 45 or parentheses 1451) Retain Machine Replace Machine Net Income Increase (Decrease) Operating costs New machine cost Salvage value (old) Total $ $ The current machine should be