LenDin Company uses forklifts to move heavy products. Recently one of the forklift has not functioned well and management is considering updating the forklift with a faster model. Current Printer New Model Original purchase cost $30,000 $14,000 Accumulated depreciation 17,000 — Book value 8,000 Estimated operating costs (annual) 3,000 1,000 Useful life 4 years 4 years If sold now, the forklift would have a salvage value of $5,000. If operated for the remainder of its useful life, the current forklift printer would have zero salvage value. The new forklift is expected to have zero salvage value after four years. Should LenDin retain or replace the forklift? replace save $1,000 retain net income of $1,000 retain net income of $5,000 retain net income of $17,000
Activity 9 — Quantitative analysis Great Northern Pizza Co….
Activity 9 — Quantitative analysisGreat Northern Pizza Co. (Great Northern) was founded in North Vancouver 10 years ago by Rob Bruno and his sister Donna. It is now February and they have approached you, CPA, for some management consulting services.Great Northern manufactures pizzas that they sell at their corporate-owned retail