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Hartley's Meat Pies is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information
Hartley's Meat Pies is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow Existing van New van Original cost Annual operating cost $50,000 $92,000 $19,500 $14,000 Accumulated depreciation $34,000 Current salvage value of the existing van $25,500 Remaining life 9 years 9 years Salvage value in 9 years 50 $0 Annual depreciation $1,778 $10,222 Sunk costs include A. the accumulated depreciation of the existing van OB. the current salvage value of the existing van OC. the original cost of the new van OD. the annual operating cost of the new van
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