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Explain why Twilight Hospital might be reluctant to purchase the new scanner, regardless of the results indicated by the incremental analysis in (b). Use incremental
Explain why Twilight Hospital might be reluctant to purchase the new scanner, regardless of the results indicated by the incremental analysis in (b). Use incremental o r replacing el * LO 5), AN Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so go en so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the vol ume of sales in of sales invoices Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $15,000 $25,000 Accumulated depreciation $ 6,000 Estimated annual operating costs $25,000 $20,000 Remaining useful life 5 years 5 years If sold now, the current machine would have a salvage value of $6,000. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Instructions Prepare an incremental analysis to determine whether the current machine should be replaced
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