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Sweet Acacia company has a factory machine with a book value of $170,000 and a...

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Accounting

Sweet Acacia company has a factory machine with a book value of $170,000 and a remaining life of 5 years. A new machine is available at the useful cost of $247,500, this machine will have a 5-year useful life with no salvage value. The new machine will lower variable manufacturing costs from $606,000 to $495,000.

Prepare an analysis to show whether sweet acacia should retain or replace the old machine.

(If an amount reduces the net income then enter with a negative sign preceding the number of parenthesis eg -15000 or 15,000)

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