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how do i do this chp 25 hw problem A company is considering replacing an old piece of machinery, which cost $601,400 and has $352,100
how do i do this chp 25 hw problem
A company is considering replacing an old piece of machinery, which cost $601,400 and has $352,100 of accumulated depreciation to date, with a new machine that has a purchase price of $483,500. The old machine could be sold for $63,900. The annual variable production costs associated with the old machine are extimated to be $157,200 per year for eight years. The annual variable production costs for the new machine are estimated to be $100,800 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is rero, enter "0". If required, use a minus sign to indicate a lass. a.2 Determine whether to continue with (Alternative 1) or replace (Aiternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is 1 Step by Step Solution
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