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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 $248000 74400 10
Coronado Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $248000 74400 10 years New Machine $460000 Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs 10 years $148800 $198400 If the old machine is replaced, it can be sold for $20000. 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 $49600 O $212000 $56000 $29600
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