(Solved): Bridgeport Company has a factory machine with a book value of \( \$ 172,000 \) and a remaining usef ...

Bridgeport Company has a factory machine with a book value of \( \$ 172,000 \) and a remaining useful life of 4 years. A new machine is available at a cost of \( \$ 246,000 \). This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from \( \$ 601,500 \) to \( \$ 510,000 \). Prepare an analysis that shows whether Bridgeport should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, ey. \( -15,000,(15,000) \).) The old factory machine should be