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Consider that ABC Company has two options: Option A: Sell the old equipment for $400,000 and purchase new equipment for $700,000. Operating costs are unchanged.
Consider that ABC Company has two options: Option A: Sell the old equipment for $400,000 and purchase new equipment for $700,000. Operating costs are unchanged. Option B: Refurbish the old equipment for $200,000 and incur an additional $10,000 per year operating expense for ten years. Which option should ABC Company proceed? Answer:
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