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A company is considering replacing an old piece of machinery, which cost $598,900 and has $350,800 of laccumulated depreciation to date, with a new machine
A company is considering replacing an old piece of machinery, which cost $598,900 and has $350,800 of laccumulated depreciation to date, with a new machine that has a purchase price of $485,100. The old machine could be sold for $64,600. The annual variable production costs associated with the old machine are estimated to be $58.200 per year for eight years. The annual variable production costs for the new machine are estimated to be $100,200 per year for eight years. indicate a loss. Differential Analvsis a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the oild madhing: b. What is the sunk cost in this situation? The sunk cost is
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