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iSooky has a spotter truck with a book value of $50,000 and a remaining useful life of 5 years. At the end of the
iSooky has a spotter truck with a book value of $50,000 and a remaining useful life of 5 years. At the end of the five years the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $37,000. iSooky can purchase a new spotter truck for $130,000 and receive $32,000 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $13,000 per year over the five-year life of the new spotter truck. The costs not relevant to the decision of whether or not to replace the spotter truck are: Multiple Choice $50,000. $130,000. $13,000. $32,000. $65,000.
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