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Crane Company is contemplating the replacerhent of an old machine with a new one. The following information has been gathered: Old Machine $340000 New Machine
Crane Company is contemplating the replacerhent of an old machine with a new one. The following information has been gathered: Old Machine $340000 New Machine $680000 102000 -0 Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs 10 years -0 10 years $275000 $204000 If the old machine is replaced, it can be sold for $27200. The company uses straight-line depreciation with a retro salvage value for all of its assets. The net advantage (disadvantage of replacing the old machines 557200 $(6800) O $(68000) O $27500
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