Introduction Q Let's look at the XYz Company example. D A manager at XYZ Company wants to replace an old machine with a new, more efficient machine. New machine. List price 900000 Annual variable expenses 800000 Expected life in years 5 old machine Original cost 720000 Remaining book value 600000 Disposal value now 150000 Annual variable expenses 1000000 Remaining life in years 5 Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 33 Introduction ⧫ Let’s look at the XYZ Company example.  A manager at XYZ Company wants to replace an old machine with a new, more efficient machine. New machine: List price 900000 Annual variable expenses 800000 Expected life in years 5 Old machine: Original cost 720000 Remaining book value 600000 Disposal value now 150000 Annual variable expenses 1000000 Remaining life in years 5