Current Attempt in Progress Oriole Partners is evaluating the replacement of an older machine with either the new SuperPlus or MaxPlus machine. The mark value of the original machine is
$10,000
but it has an expected salvage value of
$1,000
in 5 years. The details regarding the two machines are as follows: \table[[Machine,Cost,Useful Life,Salvage Value,\table[[Reduced Annual Pretax],[Operating Cash Flows]]],[SuperPlus,
$26,000
,5 years,
$2,000
,
$6,100