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12 Speed Runner Company has acquired huge machinery at a cost of $150,000 (with no breakdown of the component parts). The estimated useful life is
12 Speed Runner Company has acquired huge machinery at a cost of $150,000 (with no breakdown of the component parts). The estimated useful life is 8 years. At the end of the fifth year, the main engine requires replacement, the remainder of the machinery is perfectly worthy and is expected to last for the next three years. The cost of a new engine is $85,000, and the discounted rate .back five years is 6% Required: Compute the cost of the *.machinery (2 (2 )
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