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(7) Jorgensen Company is considering the replacement of equipment used operations. The following data are available: Old Equipment $210,000 12 New Equipment $40,000 7 Original

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(7) Jorgensen Company is considering the replacement of equipment used operations. The following data are available: Old Equipment $210,000 12 New Equipment $40,000 7 Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 7 years Annual cash operating costs $65,000 $30,000 $9,000 $8,000

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