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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 useful life Current Machine $15,200 $6,900 $24,800 5 years New Machine $25,200 $19,500 5 years If sold now, the current machine would have a salvage value of $9,300. 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.

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 involces. Management is considering undating its computer with a faster model that would eliminate all of the overtime processing. If sold now, the current machine would have a salvage value of $9,300. 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

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