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Janko Wellspring Inc. has a pump with a book value of $27,000 and a 4-year remaining life. A new, more efficient pump, is available at

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Janko Wellspring Inc. has a pump with a book value of $27,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $48,000. Janko can also receive $8,300 for trading in the old pump. The new pump will reduce variable costs by $11,200 per year over its four-year life. Should the pump be replaced

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