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8. You have 1 an opportunity to purchase a new machine for $100,000. Your old machine's original cost was $150,000 and has a trade in

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8. You have 1 an opportunity to purchase a new machine for $100,000. Your old machine's original cost was $150,000 and has a trade in value equal to its current salvage value of $10,000. Currently your annual operating costs are $40,000. The salesman who sells the machine estimates that you can save 30% on your operating costs. The estimated life of both machines is 10 years, at which time both machines will have zero salvage value. The effect of buying the new machine would be: over the ten years. a. a savings of $30,000 b. an added expense of $30,000 c. a savings of $20,000 d. an added expense of $20,000 e. None of the above

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