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A machine purchased three years ago for $38,000 has a current book value using straight-line depreciation of $177,000, its operating expenses are $39,000 per year

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A machine purchased three years ago for $38,000 has a current book value using straight-line depreciation of $177,000, its operating expenses are $39,000 per year A replacement machine would cost $226,000, have a useful life of nine years, and would require $12,000 per year in operating expenses. It has an expected salvage value of $75,000 after nine years. The current disposal value of the old machine is $87,000, if it is kept 9 more years, its residual value would be $14.000. 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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