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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: New van $91,000 $15,000 - Original cost Annual operating cost Accumulated depreciation Current salvage value of the existing van Remaining life Salvage value in 9 years Annual depreciation Existing van $58,000 $17,500 $35,000 $22,500 9 years $0 $2,556 9 years $0 $10,111 Sunk costs include O A. the annual operating cost of the new van OB. the current salvage value of the existing van O C. the original cost of the new van OD. the accumulated depreciation of the existing van
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