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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful

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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine $250000 75000 10 years -0- $200000 New Machine $500000 -O- -0- 10 years $150000 If the old machine is replaced, it can be sold for $20000. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision? O $175000 O $50000 $250000 $75000

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