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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 New Equipment
Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $275000 $448000 Accumulated depreciation 110000 -0- Annual operating costs 361000 283000 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. What is the net cost of the new equipment? $173000 $448000 $86000 $370000
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