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ABC Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine Original
ABC Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine Original cost $60,000 $35,000 Remaining useful life in years 5 5 Current age in years 5 0 Book value $25,000 Current disposal value in cash $8.000 Future disposal value in cash (in 5 years) $0 $0 Annual cash operating costs $7.000 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? Explain why
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