Twyla enterprises uses a word processing computer to handle

Reference no: EM13605055

Twyla Enterprises uses a word processing computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $15,200 $25,900 Accumulated depreciation 5,900 --- Estimated operating costs 25,000 17,800 Useful life 5 years 5 years If sold now, the current machine would have a salvage value of $4,800. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.

Reference no: EM13605055

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