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A company has a machine which cost $10,000 and has a five-year remaining life. The machine's operating costs are $50,000 pe year. The company is

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A company has a machine which cost $10,000 and has a five-year remaining life. The machine's operating costs are $50,000 pe year. The company is contemplating scrapping its current machine and purchasing a new machine for $40,000. This machine would have 5-year useful life and would require $43,000 in operating costs annually. The machine could be sold at the end of its useful life for $10,000. Based on the information provided the company should (ignore discounting considerations in your answer): Select one a. Replace its current machine, as doing so would save the company 55,000 over the 5 years, b. Keep its current machine, as doing so would save the company 55,000 over the 5 years. c. Replace its current machine, as doing so would save the company $10,000 over the 5 years. d. Keep its current machine, as doing so would save the company 510,000 over the 5 years

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