Cocoa Company Is Considering the Replacement of a Machine That

question 53

Multiple Choice

Cocoa Company is considering the replacement of a machine that is presently used in production.The following data are available: Adding all five years together,the difference in total cost between the old machine and the new machine is ________.

• A)$12,000 in favor of new machine
• B)$40,000 in favor of new machine
• C)$98,000 in favor of new machine
• D)$98,000 in favor of old machine