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Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine
Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $330000 $620000 Accumulated Depreciation 120000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $260000 $196600 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is $(62000) $26000 $38000 $(6200)
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