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12. Sheffield Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining
12. Sheffield Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs $93000 $310000 O $62000 Old Machine $217000 $310000 93000 10 years -0- $248000 New Machine $620000 -0- -0- If the old machine is replaced, it can be sold for $24800. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision? 10 years $186000
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