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Campbell Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment
Campbell Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows. Existing Equipment Replacement Equipment Cost $108,000 Cost $116,000 Operating expenses 106,000 Operating expenses 115,000 Salvage value 26,000 Salvage value 11,000 Market value 49,000 Useful life 9 years Book value 33,000 Menoining useful life 9 years "The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful afe of the equipment Required Calculate the total relevant cost of existing equipment and the potential replacement equipment Should the equipment be replaced? Now Old Total cost Should the equipment be replaced
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