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Hulkster Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment

Hulkster Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $235000 $600000 Accumulated depreciation 118000 - 0 - Annual operating costs 306000 240000 If the old equipment is replaced now, it can be sold for $65000. Both the old equipments remaining useful life and the new equipments useful life is

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