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Charile Corporation is considering buying a new donut maker. This machine will replace an old donut maker that stili has a useful life of 6
Charile Corporation is considering buying a new donut maker. This machine will replace an old donut maker that stili has a useful life of 6 years. The new machine will cost $3,660 a year to operate, as opposed to the old machine. which costs $3,950 per year to operate Also, because of increased capacity, an additional 20,600 donuts a year can be produced. The company makes a contribution margin of 5010 per donut. The old machine can be sold for $7,600 and the new machine costs $30,600. The incremental annual net cash inflows provided by the new machine would be flgnore income taxes.) Multiple crice $2,350 5290 $2.060 55,540
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