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Differential Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. life is 6
Differential Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. life is 6 years, and its residual value is negligible, on october 1 of the current year, a proposal was made to replace the present manufactur machine has an estimated useful life of 6 years and no sionificant residual value. For use in evaluating the proposal, the managerial accoun a. Prepare a differential analysis dated October 1 to determine whether to continue with (Alternative 1) or replace (Aiternative 2) the old m: required, use a minus sion to indicate a loss. Prepare a differential analysis dated October 1 to determine whether to continue with (Alternative 1 ) or replace (Alternative 2) the ol equired, use a minus sign to indicate a loss. b. Based only on the data presented, should the proposal be accepted? c. Differences in capacity between the two alternatives is to consider before a final decision is made. Ridgeway Digital Components Company assembles circuit boards by using a manually operated n life is 6 years, and its residual value is negligible. On October 1 of the current year, a proposal wa machine has an estimated useful life of 6 years and no significant residual value. For use in evalu a. Prepare a differential analysis dated October 1 to determine whether to continue with (Alterna required, use a minus sign to indicate a loss
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