Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book...

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Accounting

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $38,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $48,000. Variable manufacturing costs are $33,400 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost $ 125,000 $ 115,000 Variable manufacturing costs per year 22,500 10,100

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