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I'm stuck! Please Help! Keep or Replace Machine: Skiles Corporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding

I'm stuck! Please Help!

Keep or Replace Machine:

Skiles Corporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and finishing machine for over 10 years and believes that it may be time to replace the machine. The company is trying to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine.

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Replace or Keep Decision Differential Analysis Report Cost of replacing old machine: Annual differential decrease in cost x number of years 6 Total differential decrease in cost Proceeds from sale of present machine 168,100 Cost of new machine 795,100 Net differential (increase)/decrease in cost, six year total

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