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A commercial oven with a book value of $69,700 has an estimated remaining 5-year life. A proposal is offered to sell the oven for $8,310
A commercial oven with a book value of $69,700 has an estimated remaining 5-year life. A proposal is offered to sell the oven for $8,310 and replace it with a new oven costing $111,900. The new machine has a 5-year life with no residual value. Annual maintenance costs for the old machine were $51,900. The new machine would reduce annual maintenance costs by $25,500.
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