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A CNC mill was purchased 3 years ago for $40,000. Even though it is still a productive machine, a better machine is now on the
A CNC mill was purchased 3 years ago for $40,000. Even though it is still a productive machine, a better machine is now on the market that can be bought for $35,000. The new machine will increase the benefit by reducing the annual operating costs. Operating cost and book values are shown below for both machines. Is it worth replacing the machine if the machine is required only for the next 4 years? MARR-15%
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