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Wildhorse Company has a factory machine with a book value of $161,000 and a remaining...

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Accounting

Wildhorse Company has a factory machine with a book value of $161,000 and a remaining useful life of 6 years. A new machine is available at a cost of $251,500. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $599,500 to $499,000. Prepare an analysis that shows whether Wildhorse should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).)

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