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Ben Inc. has a machine with a book value of $ 5 0 , 0 0 0 and a five - year remaining life. Its

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Ben Inc. has a machine with a book value of $50,000 and a five-year remaining life. Its current market value is $38,000. A new machine is available at a cost of $85,000. The new machine will reduce variable manufacturing costs by $14,000 per year over its five-year life. Should the old machine be replaced with a new one assuming Ben Inc. can sell the old machine at the market value?
Yes, because Ben will be better off by $14,000.
No, because Ben will be worse off by $15,000.
Yes, because Ben will be better off by $23,000.
No, because Ben will be worse off by $33,000.
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