Lopez Company is considering replacing one of its old manufacturing machines. The old machine has...

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Accounting

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variable manufacturing costs are $36,000 per year for this old machine. Information on two Machine replacement machines follows. The expected useful life of each replacement machine is five years.
\table[[,Machine A,Machine B],[Purchase price,$115,000,$125,000
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