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Biscayne Biscuits Inc. is considering buying a new oven. This oven will replace an old oven that still has a useful life of 6 years.
Biscayne Biscuits Inc. is considering buying a new oven. This oven will replace an old oven that still has a useful life of years. The new oven will cost $ a year to operate, as opposed to the old oven, which costs $ per year to operate. Also, because of increased capacity, an additional biscuits a year can be produced. The company makes a contribution margin of $ per biscuit. The old oven can be sold for $ and the new oven costs $ The incremental annual net cash inflows provided by the new oven would be Ignore income taxes.:
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