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Blue Band Company is considering replacing a piece of equipment that is presently used in the production of its product. The following data are available:
Blue Band Company is considering replacing a piece of equipment that is presently used in the production of its product. The following data are available: Replacement Old Equipment Equipment $140,000 5 0 Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 5 years Annual cash operating costs $200,000 10 5 $100,000 $27,000 0 $22,000 0 $15,000 Required: a. Prepare a schedule that compares all relevant items for the next 5 years. Show all calculations
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