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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
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 A A $(5900) $24000 $54000 $(59000) Old Machine $310000 110000 10 years -0- $240000 New Machine $590000 -0- -0- If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is 10 years $178000
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