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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $310000 $590000 Accumulated Depreciation 110000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $240000 $178000 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is $(59000) $54000 $24000 $(5900)
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