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Eudora Company is considering replacing a machine that is presently used in the production of its product. The following data available: Old machine Original purchase
Eudora Company is considering replacing a machine that is presently used in the production of its product. The following data available: Old machine Original purchase price: $45,000 Book value: $25,000 Annual operating costs: $7,000 Useful life (remaining): 5 years Trade in value now: $8,000 Replacement machine Purchase price: $35,000 Annual operating costs: $4,000 Useful life: 5 years The difference in cost between keeping the old machine buying the replacement machine is $12,000 in favor of buying the replacement machine. $12,000 in favor of keeping the old machine. $13,000 in favor of buying the replacement machine. $13,000 in favor of keeping the old machine
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