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Chattanooga Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful
Chattanooga Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine $333,666 99,333 10 years -0- $246,397 New Machine $601,988 -0- -0- 10 years $186,628 If the old machine is replaced, it can be sold for $25,525. The total net advantage or disadvantage of replacing the old machine is (Hint be sure to consider the useful life) Enter your result with a - sign in front of your value if there is a disadvantage to replacing the old equipment with the new!
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