working | ||||
incremental income(cost) | ||||
reduction in variable manufacturing cost | 115000 | 23000*5years | ||
cost of new machine | ($121000) | |||
cash received from trade in of old machine | $87000 | |||
incremental income/(cost) | 81000$ | [115000-121000+87000] | ||
should the machine be replaced | Yes |
Rory Company has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is avai...
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful life. A new machine is available at a cost of $118,000, and Rory can also receive $68,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)
Rory Company has a machine with a book value of $113,000 and a remaining five-year useful life. A new machine is available at a cost of $122,500, and Rory can also receive $75,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income incremental cost)
Rory Company has a machine with a book value of $111.000 and a remaining five-year useful life. A new machine is available at a cost of $120,000, and Rory can also receive $90,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income incremental cost)
Rory Company has a machine with a book value of $93.000 and a remaining five-year useful life. A new machine is available at a cost of $116,000, and Rory can also receive $63,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $16,000 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Cost of new machine...
Check my work QS 23-14 Keep or replace LO P5 points Rory Company has a machine with a book value of $111,000 and a remaining five-year useful life. A new machine is available at a cost of $122,000, and Rory can also receive $64,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $22,500 per year over its five-year useful life. eBook Calculate the incremental income. (Any losses or outflows should be entered with...
Check my work QS 23-15 Keep or replace LO A1 1.42 points Rory Company has a machine with a book value of $99,000 and a remaining five-year useful life. A new machine is available at a cost of $122.500, and Rory can also receive $84,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $21,500 per year over its five-year useful life. eBook Calculate the incremental income. (Any losses or outflows should be entered...
XYZ 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 XYZ 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?
Granfield Company has a plece of manufacturing equipment with a book value of $10,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. Granfield can purchase a new machine for $120,000 and recole $22000 in return for trading in its old machine. Current variable manufacturing costs are 45.000 The new machine w reduce variable manufacturing costs down to $19.000 per year over the four-year life of...
Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year...
18 - Riener Hospital has an x-ray machine with a book value of $60,000 and a remaining useful life of three years. At the end of the three years the equipment will have a zero salvage value. The market value of the equipment is currently $32,000. Riener can purchase a new machine for $145,000 and receive $28,000 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $27,000 per year over the three-year...