Planet Design Services, Inc., is considering replacing a machine. The following data are available:

The difference between keeping the old machine and replacing the old machine is ________.
A) $910,000 in favor of keeping the old machine
B) $198,000 in favor of keeping the old machine
C) $910,000 in favor of replacing the old machine
D) $198,000 in favor of replacing the old machine

Question

Planet Design Services, Inc., is considering replacing a machine. The following data are available:

The difference between keeping the old machine and replacing the old machine is ________.
A) $910,000 in favor of keeping the old machine 
B) $198,000 in favor of keeping the old machine 
C) $910,000 in favor of replacing the old machine 
D) $198,000 in favor of replacing the old machine

Quizplus · Accepted Answer

New [$510,000 + (5 × $66,000) - $142,000] - Old [(5 × $100,000)] = $198,000