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CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 194 Mars Timber Corporation machine that removes the art from out timber. The machines veliable and results

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CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 194 Mars Timber Corporation machine that removes the art from out timber. The machines veliable and results in a significant amount of downtime and excessive labor costs. The management is considering replacing the machine with a more cent one which will minimize downtime and excesive labor costs. Data are presented below for the two machines: New Machine $370,000 I Love Ongina puhas cost Accumulated depreciation Estimated the Old Machine $340,000 230.000 5 years 5 years It is estimated that the new machine will produce annual cost savings of $85,000. The old machine can be sold to a scrap dealer for $5,000. Both machines will have a salvage value of zero operated for the remainder of their useful lives Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative in preceding the number 45 or parentheses g. (45). De mot have any field blank. Enter for the amounts) Retain Equipment Replace Equipment Net Income Increase/(Decrease) purchase the new machine

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