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Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated
Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Accumulated depreciation Old Equipment $225,000 90,000 New Equipment $375,000 -0- Annual operating costs 300,000 252,000 If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is: O $(15.000) $60,000 $90,000 O $(75.000) Ne
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