Bryant Company has a factory machine with a book value of $88,900 and a remaining useful life of 7 years. It can be sold for $31,600. A new machine is available at a cost of $484,500. This machine will have a 7-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $613,200 to $508,100. Prepare an analysis showing whether the old machine should be retained or replaced.

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?