Business
Business, 05.08.2019 17:10, coryintheswamp

Acompany is considering replacing an old piece of machinery, which cost $605,400 and has $367,000 of accumulated depreciation to date, with a new machine that has a purchase price of $578,650. the old machine could be sold for $250,300. the annual variable production costs associated with the old machine are estimated to be $61,800 per year for eight years. the annual variable production costs for the new machine are estimated to be $17,950 per year for eight years. prepare a differential analysis dated october 3, 2014, to determine whether to continue with (alternative 1) or replace (alternative 2) the old machine.

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