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Concord Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $230000 New Machine
Concord Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $230000 New Machine $460000 69000 -0- Price Accumulated Depreciation Remaining useful life 10 years -0- -O- 10 years Useful life Annual operating costs $185000 $138000 If the old machine is replaced, it can be sold for $18400. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is O $18500 O $(4600) O $28400 O $(46000)
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