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Business, 21.03.2020 09:59 Tobymorgan3287

Cocoa Beach Company is considering replacing a machine that is presently used in the production of its product. The following data are available:

Old Machine New Machine
Original cost $200,000 $160,000
Useful life in years 10 5
Current age in years 5 0
Book value $100,000 ‑
Disposal value now $32,000 ‑
Disposal value in 5 years 500 2000
Annual cash operating costs $20,000 $14,000

Ignoring income taxes, the difference in cost between the old and new machine is $.

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