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CS Enterprises has a machine that originally cost $250,000. Its current book value is $75,000 and its remaining useful life is two years. CS is
CS Enterprises has a machine that originally cost $250,000. Its current book value is $75,000 and its remaining useful life is two years. CS is considering a replacement that costs $212,000 and has a two-year useful life. The new machine will decrease variable costs from $84,000 to $73,000. If the old machine has a scrap value of $3,000, what should CS do? Why?
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