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Janko Weltspring Inc. has a pump with a book value of $26.000 and a 4-year remaining life. A new, more efficient pump, is available at
Janko Weltspring Inc. has a pump with a book value of $26.000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $47.000 Janko can also receive $8,200 for trading in the old pump. The new pump will reduce variable costs by $11,100 per year over its four-year life. Should the pump be replaced? Multiple Choice No, because income will decrease by $11500 per year. No, Janko will record a loss of $16.400 if they replace the pump Yes, because income will increase by 55,600 in total No, because the company will be $5,000 worse oft in total Yes, because income will increase by 55.600 per year
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