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Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 6
Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of years. The new machine will cost $ a year to operate, as opposed to the old machine, which costs $ per year to operate. Also, because of increased capacity, an additional donuts a year can be produced. The company makes a contribution margin of $ per donut. The old machine can be sold for $ and the new machine costs $ The incremental annual net cash inflows provided by the new machine would be Ignore income taxes.:
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