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A machine with a book value of $247,300 has an estimated 6-year life. A proposal is offered to sell the old machine for $216,700 and
A machine with a book value of $247,300 has an estimated 6-year life. A proposal is offered to sell the old machine for $216,700 and replace it with a new machine at a cost of $282,600. The new machine has a 6 -year life with no residual value. The new machine would reduce annual direct labor costs from $50,500 to $40,400. Prepare a differential analysis dated October 3 on whether to Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2). If an amount is zero, enter " 0 ". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Should the company continue with the old machine (Alternative 1 ) or replace the old machine (Alternative 2)
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