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having trouble with total cost and if the machine should be replaced traight line door A machine purchased three years ago for $306,000 has a

image text in transcribedhaving trouble with total cost and if the machine should be replaced

traight line door A machine purchased three years ago for $306,000 has a current book value using straight-line depreciation of $193,000; its operating expenses are $37.000 per year. A replacement machine would cost $225,000, have a useful life of ten years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $65,000 after ten years. The current disposal value of the old machine is $75,000; if it is kept 10 more years, its residual value would be $13,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Keep Old Machine Purchase New Machine Total costs Should the old machine be replaced

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