J&H Company has a router platform with a book value of $65,000 and a three-year remaining life.A new router platform is available at a cost of $125,000,and J&H can also receive $16,000 for trading in the old router platform.The new router platform will reduce variable manufacturing costs by $31,000 per year over its three-year life.Should the router platform be replaced?
A)Yes,as will increase income by $31,000 in total.
B)Yes,as it is always important to have the current technology.
C)No,it will decrease income by $16,000 in total.
D)Yes,as the company will increase income by $16,000 total.
E)J&H will be not be better or worse off by replacing the router platform.

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The Answer of J&H Company has a router platform with a book value of $65,000 and a three-year remaining life.A new router platform is available at a cost of $125,000,and J&H can also receive $16,000 for trading in the old router platform.The new router platform will reduce variable manufacturing costs by $31,000 per year over its three-year life.Should the router platform be replaced?
A)Yes,as will increase income by $31,000 in total.
B)Yes,as it is always important to have the current technology.
C)No,it will decrease income by $16,000 in total.
D)Yes,as the company will increase income by $16,000 total.
E)J&H will be not be better or worse off by replacing the router platform.

J&H Company Has a Router Platform with a Book Value