Granfield Company has a piece of manufacturing equipment with a book value of $35,500 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,100. Granfield can purchase a new machine for $111,000 and receive $21,100 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,100 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
A. $17,500 increase
B. $72,400 decrease
C. $14,400 decrease
D. $48,850 increase
E. $17,500 decrease
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Granfield Company has a piece of manufacturing equipment with a book value of $35,500 and a remaining useful life of four years. At the end ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Blue Co. recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments of $16,275 are made annually at the end of each year. The interest rate charged by the lessor was 10%.
Answers (1)
In the agriculture industry, what is the significance of Problem Solving-how is it used and why is it so important?
Answers (1)
McKenna offers to sell Lori her collection of hand-painted European tiles. Before Lori has a chance to accept, McKenna says, "Sorry, I changed my mind. I'm not going to sell the tiles." McKenna has just made: a. restitution. b. a counteroffer. c.
Answers (1)
Which of these is a disadvantage of banking with national retail banks
Answers (1)
Do careers offer a higher chance of employment and stability than jobs
Answers (1)
New Questions in Business
Why do price discrimination and the existence of slightly different variants of the same product tend to go hand in hand? By introducing slightly different variants of the product, firms that price discriminate are able to
Answers (1)
On April 1, 2017, Planet Services received $8,000 in advance of performing the services from a customer for three months of service long dash - April, May and June.
Answers (1)
The founder and former ceo fo jones soda peter van stock claime that sharing the core values of your loyal customer base is just good for buisness. if you wanted to integrate this business philosophy into your own company you would study
Answers (1)
Jean's Fashions is growing quickly. Dividends are expected to grow at a 22 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. The required return is 12 percent and the company just paid a $3.
Answers (1)
A small number of institutional investors are often able and motivated to bring direct shareholder pressure on a firm's management in an effort to reduce potential agency conflicts. a. True b. False:
Answers (1)