Wildhorse Company has a factory machine with a book value of $161,000 and a remaining...
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Wildhorse Company has a factory machine with a book value of $ and a remaining useful life of years. A new machine is available at a cost of $ This machine will have a year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $ to $ Prepare an analysis that shows whether Wildhorse should retain or replace the old machine. Identify variable cost, new machine cost and categorize it into keep equipment and replace equipment, also analyze whether net income will increase or decrease if the eqipment is kept or replaced. 
Wildhorse Company has a factory machine with a book value of $ and a remaining useful life of years. A new machine is available at a cost of $ This machine will have a year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $ to $
Prepare an analysis that shows whether Wildhorse should retain or replace the old machine. Identify variable cost, new machine cost and categorize it into keep equipment and replace equipment, also analyze whether net income will increase or decrease if the eqipment is kept or replaced.
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