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Business, 13.05.2021 20:40 robbyd47

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $44,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $54,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost $ 123,000 $ 116,000 Variable manufacturing costs per year 22,600 10,800 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine

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