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Bonita Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New
Bonita Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $165000 $272000 Accumulated 66000 -0- depreciation Annual operating 218000 173000 costs If the old equipment is replaced now, it can be sold for $44500. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. What is the net cost of the new equipment? O $272000 O $53000 O $107000 O $227000
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