Reference no: EM131812730

Question - Begley, Inc. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine New Machine

Price $250,000 $500,000

Accumulated Depreciation 75,000 -0-

Remaining useful life 10 years -0-

Useful life -0- 10 years

Annual operating costs $200,000 $150,500

If the old machine is replaced, it can be sold for $20,000.

The net advantage (disadvantage) of replacing the old machine is

A) $15,000

B) $20,000

C) $(5,000)

D) $(50,000)