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12 Charlie Corporation is considering buying a new donut maket. This machine will replace an old donut maker that still has a useful life of

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12 Charlie Corporation is considering buying a new donut maket. This machine will replace an old donut maker that still has a useful life of 6 years. The new machine will cost $3.770 a year to operate, as opposed to the old machine, which costs $4,225 per year to operate. Also, because of increased capacity, an additional 21,700 donuts a year can be produced. The company makes a contribution margin of $0.10 per donut. The old machine can be sold for $8,700 and the new machine costs $31700. The Incremental annual net cash inflows provided by the new machine would be ignore income taxes.) 3.7

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