Business
Business, 20.05.2020 12:57, alexandrecarmene

Rocko Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine is available at a cost of $85,000 and Rocko can also receive $38,000 for trading in the old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the machine be replaced?Group of answer choicesYes, because income will increase by $14,000 per year. Yes, because income will increase by $23,000 in total. No, because the company will be $23,000 worse off in total. No, because the income will decrease by $14,000 per year. Rocko will be not be better or worse off by replacing the machine.

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Rocko Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine...

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