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Campbell Company paid $105,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a

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Campbell Company paid $105,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a new machine that costs $113,000. The old machine costs $49.000 per year to operate, but the new machine could be operated for only $11,000 per year. The new machine, which will be available for delivery on January 1 year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $36,000. The expected salvage value of both machines is zero. Required Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be replaced? Buy Now Keep old Total voldable costs Should the machine be replaced

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