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A Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment

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A Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $125,000 $150,000 Accumulated depreciation 50,000 -0- Annual operating costs 200,000 170,000 If the old equipment is replaced now, it can be sold for $40,000. Both the old equipment's remaining useful life and the new equipment's useful life is 4 years. What is the net advantage (disadvantage) of replacing the old equipment with the new equipment? O $(15,000) $30,000 $10,000 $(10,000) O None

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