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A machine purchased three years ago for $315,000 has a current book value using straight-line depreciation of $182,000; its operating expenses are $31,000 per year.

image text in transcribed A machine purchased three years ago for $315,000 has a current book value using straight-line depreciation of $182,000; its operating expenses are $31,000 per year. A replacement machine would cost $222,000, have a useful life of ten years, and would require $12,000 per year in operating expenses. It has an expected salvage value of $59,000 after ten years. The current disposal value of the old machine is $71,000; if it is kept 10 more years, its residual value would be $19,000 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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