Explore BrainMass

Explore BrainMass

    Total savings from using new machine

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    (Ignore taxes and the time value of money in this problem.) Harrison Architects is considering the purchase of a new special laser printer to replace the old printer the company uses to make construction blueprints. Selected information on the two machines is given below:

    Old Machine New Machine
    Original cost when new $13,000 $15,000
    Accumulated depreciation to date $ 4,000
    Current salvage value $ 6,000
    Annual operating cost $ 7,000 3,000
    Remaining useful life 4 years 4 years

    The total savings from using the new machine instead of the old machine over the next four years would be:
    a. $18,000
    b. $19,000
    c. $15,000
    d. $ 7,000

    © BrainMass Inc. brainmass.com June 3, 2020, 11:35 pm ad1c9bdddf
    https://brainmass.com/business/accounting/total-savings-new-machine-286253

    Solution Preview

    The savings from the new machine per year = 7,000-3,000=4,000 per ...

    Solution Summary

    The solution explains how to calculate the total savings from using new machine instead of the old machine.

    $2.19

    ADVERTISEMENT