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D Question 16 SixthZ is trying to decide to decide whether or not to purchase a new table saw for cutting its treehouse wood. Information
D Question 16 SixthZ is trying to decide to decide whether or not to purchase a new table saw for cutting its treehouse wood. Information related to the old saw and the new saw is as follows: New Saw Old Saw Original Cost $10,000 $7,000 Accumulated Depreciation Not yet acquired $3,000 Book Value Not yet acquired $5,000 Current Disposal Value Not yet acquired $3,000 Annual Operating Cost $500 $1,000 Useful Life 4 years 7 years Current Age 0 years 3 years Remaining Useful Life 4 years 4 years Terminal Disposal Value (in 4 years) $3,000 $500 Should SixthZ purchase the new saw? O No, because it would lose $2,500 by purchasing the new saw No, because it would lose $8,000 by purchasing the new saw No, because it would lose $6,500 by purchasing the new saw O No, because it would lose $4,500 by purchasing the new saw 2 pts
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