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A machine purchased three years ago for $ 3 1 6 , 0 0 0 has a current book value using straight - line depreciation

A machine purchased three years ago for $316,000 has a current book value using straight-line depreciation of $193,000; its operating expenses are $35,000 per year. A replacement machine would cost $239,000, have a useful life of ten years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $ 67,000 after ten years. The current disposal value of the old machine is $ 77,000; if it is kept 10 more years, its residual value would be $ 10,000. Required Calculate the total costs in keeping the old machine and purchase a new machine . Should the old machine be replaced?

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