Question - Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $300,000 $600,000 Accumulated Depreciation 90,000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $240,000 $180,600
If the old machine is replaced, it can be sold for $24,000. The net advantage (disadvantage) of replacing the old machine is
a) $18,000
b) $24,000.
c) $(6,000).
d) $(60,000).