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Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $
Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine $ 610000 Price $330000 Accumulated Depreciation 100000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $ 260000 $ 194600 If the old machine is replaced, it can be sold for $ 24000. The net advantage (disadvantage) of replacing the old machine is O $26000 O $(6100) O $ 68000 O $(61000)
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