Business, 25.12.2019 23:31 jolleyrancher78

Mountain gear has been using the same machines to make its name brand clothing for the last five years a cost efficiency consultant has suggested that production costs may be reduced by purchasing mote technologically advanced machinery the old machines cost the company $100,000 the old machines presently have a book value of $60,000 and a market value of $6,000 they are expected to have a five-year remaining life and zero salvage value the new machines would cost the company $60,000 and have operating expenses of $9,000 a year the new machines are expected to have a five year useful life and no salvage value the operating expenses associated with the old machines are $15,000 a year the new machines are expected to increase quality, justifying a price increase, and thereby increasing sales revenue by $5,000 a year select the true statement

a. the company will be $11,000 better off over the 5 year period if it replaces the old equipment
b. the company will be $20,000 better off over the 5-year period if it keeps the old equipment
c. the company will be $12,000 better off over the 5-year period if it replaces the old equipment
d. the company will be $6 000 better off over the 5-year period if it replaces the old equipment

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Mountain gear has been using the same machines to make its name brand clothing for the last five yea...