A company purchases a new machine to perform the cutting operation for $20,000 in 2006. This machine has an expected useful life of 10 years. In 2009 the company hires a consulting team to come and analyze their facility. The consultants establish that the cutting operation is generating $15,000 in revenue each year. The consultants point out there is a new cutting technology available that will allow the company to cut much quicker. It is expected that this will increase revenues related to cutting to $25,000 per year. However the price of the new technology is uncertain.,A) What is the accounting profit of the new technology and what is the economic profit?,,,,,B) How much should the company be willing to pay for this new technology?,,,,,C) The company is concerned that the consultants don’t understand that the current machine was just purchased 3 years ago. Should someone from the company give the consultants this information so that they can make a more complete analysis, why?,
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