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Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment $245000 New
Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment $245000 New Equipment $410000 Purchase price Accumulated depreciation 90000 -0- Annual operating costs 310000 260000 If the old equipment is replaced now, it can be sold for $90000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. What is the cost of the new equipment? $165000 O $65000 O $410000 O $320000
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