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Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $330000 $640000 Accumulated Depreciation 118000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $270000 $180600 If the old machine is replaced, it can be sold for $24000. Which of the following amounts is relevant to the replacement decision? O $89400 O $118000 O $212000 O $330000
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