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Business, 27.11.2019 06:31 AnastasiaJauregui

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $42,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. it has a current market value of $52,000. variable manufacturing costs are $33,400 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 120,000 $ 120,000 variable manufacturing costs per year 22,700 10,800 calculate the total change in net income if alternative a, b is adopted. should xinhong keep or replace its manufacturing machine? if the machine should be replaced, which alternative new machine should xinhong purchase?

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