Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine New Machine $330000 $610000 96000 O $275000 O $610000 O $186600 O $234000 10 years -0- $275000 If the old machine is replaced, it can be sold for $25500. Which of the following amounts is a sunk cost? -0- -0- 10 years $186600
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- Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine New Machine $430000 $860000 O $86000 O $430000 O $129000 Ⓒ$301000 129000 10 years 0 $344000 -0 0 10 years $258000 If the old machine is replaced, it can be sold for $34400. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision?Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $360000 $630000 Accumulated Depreciation 90000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $280000 $190600 If the old machine is replaced, it can be sold for $24000. Which of the following amounts is a sunk cost? ○ $190600 O $280000 ○ $270000 O $630000Marigold Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $430000 $630000 Accumulated Depreciation 102000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $265000 $186600 If the old machine is replaced, it can be sold for $24000. Which of the following amounts is a sunk cost? $186600 $265000 $328000 $630000
- Sheridan Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life: Annual operating costs Old Machine $240000 72000 10 years $192000 New Machine $480000 -0- 10 years $144000 If the old machine is replaced, it can be sold for $19200. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision?Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $250000 $500000 Accumulated Depreciation 75000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $205000 $150000 If the old machine is replaced, it can be sold for $20000. The company uses straight-line depreciation with a zero salvage value for all of its assets.The net advantage (disadvantage) of replacing the old machine is $(50000) $(5000) $20500 $70000Coronado Industries is contemplating the replacement of an old machine with a new one.. The following information has been gathered: Old Machine New Machine $260000 $520000 Price 78000 Accumulated Depreciation 0- Remaining useful life 10 years -0- 10 years Useful life -0- Annual operating costs $215000 $156000 If the old machine is replaced, it can be sold for $20800. The company uses straight-line depreciation with a zero salvage value for all of its assets The net advantage (disadvantage) of replacing the old machine is O$(5200) O $(52000) $21500 $90800
- Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $420000 $840000 Accumulated Depreciation 126000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $335000 $252000 If the old machine is replaced, it can be sold for $33600. The company uses straight-line depreciation with a zero salvage value for all of its assets.The net advantage (disadvantage) of replacing the old machine is $(8400) $33500 $(84000) $23600Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $340000 $680000 Accumulated Depreciation 102000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $272000 $204000 If the old machine is repiaced, it can be sold for $27200. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision? $68000 • $238000 $102000 $340000Kingbird is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $229500 $382500 Accumulated depreciation 91800 - 0 - Annual operating costs 306000 244800 If the old equipment is replaced now, it can be sold for $61200. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years.For this question only, assume that six months ago Chung’s equipment manager spent $30600 refurbishing the old equipment. Additionally, the equipment manager has determined that the new equipment can be rented out during idle periods to generate $1836 per year. Using this new information, what is the total cash flow associated with replacing the equipment? ($45900) ($321300) ($342720) ($312120)
- Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation Annual operating costs O $66000 Old Equipment New Equipment $225000 $500000 $(91000) $94000* O $(26000) 94000 316000 -0- If the old equipment is replaced now, it can be sold for $66000. Both the old equipment's remaining useful life and the new equipment's useful life is 6 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is 248000Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $275000 $448000 Accumulated depreciation 110000 - 0 - Annual operating costs 361000 283000 If the old equipment is replaced now, it can be sold for $74200. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years.Which of the following amounts is irrelevant to the replacement decision? $165000 $373800 $74200 $448000Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $195000 $320000 Accumulated depreciation 78000 - 0 - Annual operating costs 257000 203000 If the old equipment is replaced now, it can be sold for $52600. Both the old equipment’s remaining useful life and the new equipment’s useful life is 5 years.Which of the following amounts is irrelevant to the replacement decision? $52600 $117000 $320000 $257000