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27 TE MC Ou. 10-93 (Algo) Janko Wellspring Incorporated has a pump with a... Janko Wellspring incorporated has a pump with a book value of

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TE MC Ou. 10-93 (Algo) Janko Wellspring Incorporated has a pump with a... Janko Wellspring incorporated has a pump with a book value of $28,000 and a four-year remaining infe. A new, more efficient pump is avallable at a cost of $49,000. Janko can receive $8,400 for trading in the old pump. The old machine has variable manufacturing costs of $29,000 per year. The new pump will reduce variable costs by $11,300 per year over its four-year life. Should the pump be replaced? Multipie Choice No, because the company will be $4,600 worse off in total. Yes, because income will increase by $4,600 per year

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