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eddyreynoso6388
08.05.2021 •
Business
Rugby Corp. is considering replacing one of its testing machines. The CEO feels that new machine is more efficient and hence will save costs to company. The following information is available:
Old Machine
New Machine
Original cost
$10,000,000
$5,500,000
Useful life
4 years
2 years
Current age
2 years
0
Remaining useful life
2 years
2 years
Accumulated depreciation
$5,000,000
Book value
$5,000,000
Current disposal value
$50,000
Terminal disposal value(2 years from now)
$0
$0
Annual operating costs
$12,000,000
$8,500,000
Should Rugby Corp. replace the old machine?
Solved
Show answers
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Ответ:
Hope I helped!
~ Zoe