Asset Replacement An uninsured boat costing $93,600 was wrecked the first day it was used. It can be either sold as-is for $9,360 cash and replaced with a similar boat costing $97,400 or rebuilt for $78,600 and be brand new as far as operating characteristics and looks are concerned. Required: What is the difference in cost between the two options?

Asset Replacement An uninsured boat costing $93,600 was wrecked the first day it was used. It can be either sold as-is for $9,360 cash and replaced with a similar boat costing $97,400 or rebuilt for $78,600 and be brand new as far as operating characteristics and looks are concerned. Required: What is the difference in cost between the two options