Ridley Company has a factory machine with a book value of $84900 and a remaining useful life of 5 years. A new machine is available at a cost of $197100. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $645300 to $445800.Prepare an analysis showing whether the old machine should be retained or replaced.(If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g. -15000 or parenthesis e.g. (15000). Enter all other amounts in all other columns as positive and subtract where necessary.)RetainEquipmentReplaceEquipment

error: Content is protected !!