Purchase 0051 new $81 ,000 $121,500 Estimated useful life new 6 years 5 years Annual operating costs $56,700 $ 18,900 Annual straight-line…
Murl Plastics Inc. purchased a new machine one year ago at a cost of $81,000. Although the machine operates well, the president of Murl Plastics is wondering if the company should replace it with a new electronic machine that has just come on the market. The new machine would slash annual operating costs by two-thirds, as shown in the comparative data below:
