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Assume that a company is choosing between two alternatives-keep an existing machine or replace it with a machine. The costs associated with the two alternatives

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Assume that a company is choosing between two alternatives-keep an existing machine or replace it with a machine. The costs associated with the two alternatives are summarized as follows: $ 26,000 Purchase cost (new) Remaining book value Overhaul needed now Annual cash operating costs Salvare value (now) Salvaxe value eight years from now $ $ 5 $ 15,000 6.000 5,000 10,500 2,000 1,000 5 2.000 6,000 wck here to view Exhibit 148:1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided e company overhauls its existing machine, it will be usable for eight more years. If it buys the new machine, it will be used for eight years ed on a net present value analysis with a discount rate of 13%, what is the financial advantage (disadvantage) of replacing the existing hine with a new machine? Multiple Choice $157 $(323) $(1.173) o $(1,523)

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