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J&H Company has a router platform with a book value of $75,000 and a three-year remaining life. A new router platform is available at a
J&H Company has a router platform with a book value of $75,000 and a three-year remaining life. A new router platform is available at a cost of $135,000, and J&H can receive $17,000 for trading in the old router platform. The old router platform has variable manufacturing costs of $61,000 per year. The new router platform will reduce variable manufacturing costs by $32,000 per year over its three-year life. Should the router platform be replaced? Multiple Choice Yes, as will increase income by $32,000 in total Yes, as the company will increase income by $22,000 total. J & H will be not be better or worse off by replacing the router platform. Yes, as it is always important to have current technology
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