Hello, can someone please help me. I’m new to accounting and i’m having lots of trouble with this question. i would really appreciate your help

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7 .Value*10.00 pointsProblem 9 – 1 Making an Equipment Replacement Decision ( LO1 – CC 2 )Murk Plastics Inc . purchased a new machine one year ago at a cost of $63, 000 . Although the machine*operates well , the president of Mum Plastics is wondering if the company should replace it with a newelectronic machine that has just come on the market . The new machine would slash annual operating castsby two – thirds , as shown in the comparative data below :"PresentProposedMachineNew MachinePurchase cost new$63, 000$:94, 500Estimated useful life new*6 yearsAnnual operating costs$44, 100$ 14, 7005 yearsAnnual straight – line depreciation10, 50018, 500Remaining book value*52, 500Salvage value now*10, 500Salvage value in five yearsIn trying to decide whether to purchase the new machine , the president has prepared the following analysis ."Book value of the old machine$52, 500Less : Salvage value10, 500Net loss from disposal$42, 000