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J&H Company has a router platform with a book value of $81,000 and a 3-year remaining life. A new router platform is available at a
J&H Company has a router platform with a book value of $81,000 and a 3-year remaining life. A new router platform is available at a cost of $141,000, and J&H can also receive $17,600 for trading in the old router platform. The new router platform will reduce variable manufacturing costs by $32,600 per year over its three-year life. Should the router platform be replaced? Multiple Choice Yes, as it is always Important to have current technology. J&H will be not be better or worse off by replacing the router platform. Yes, as will increase Income by $32,600 in total. O No, it will decrease income by $25,600 In total. Yes, as the company will increase Income by $25,600 total
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