Will Wash Manager of the Laundry Department at the Hooty Snooty Hotel is consi

Will Wash Manager of the Laundry Department at the Hooty Snooty Hotel is considering the purchase of a dryer which turns off automatically when laundry is
dry. The new dryer will replace a dryer currently being used which must be monitored to determine when laundry is dry. Selected information on the two
machines is given below:

Standard Dryer

Automatic

Turn-off Dryer

Original cost new

$6000

$8000

Accumulated depreciation to date

2400

-0-

Current salvage value

2000

-0-

Estimated cost per year to operate

4500

2500

Remaining years of useful life

5 years

5 years

Required:

Show computation covering the five-year period that will show the net advantage or disadvantage of purchasing the automatic dryer. Ignore income taxes and use
only relevant costs in your analysis- be brief.