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)