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Carla Vista Timber Corporation uses a machine that removes the bark from cut timber. The machine is unreliable and results in a significant amount of

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Carla Vista Timber Corporation uses a machine that removes the bark from cut timber. The machine is unreliable and results in a significant amount of downtime and excessive labor costs. Management is considering replacing the machine with a more efficient one which will minimize downtime and excessive labor costs. Data are presented below for the two machines: It is estimated that the new machine will produce annual cost savings of $100,300. The old machine can be sold to a scrap dealer for $10.200. Both machines will have a salvage value of zero if operated for the remainder of their useful lives. Determine whether the company should purchase the new machine. (Enter negutive amounts using either a negative sign preceding the number eg. -45 or parentheses es. (45). Do not leave any field blank. Enter 0 for the amounts) Determine whether the company should purchase the new machine. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not leave any field blank. Enter 0 for the amounts.)

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