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help please I want full answer Question :3 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that
help please I want full answer
Question :3 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Original purchase cost Accumulated depreciation Estimated annual operating costs Useful life New Machine $25,000 Current Machine $15,000 $ 6,000 $25,000 5 years $20,000 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 Should the current machine be replaced Step by Step Solution
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