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Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment $272000 New

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Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment $272000 New Equipment $448000 Purchase price Accumulated depreciation Annual operating costs 108800 -0- 359000 310000 If the old equipment is replaced now, it can be sold for $74200. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The company uses straight line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old equipment with the new equipment is $(128800) O $74200 $108800 O $(87000)

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