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Keep Old / Buy New Equipment (10 points) After recently purchasing a new IT system, an intern found a new system that she believes will
Keep Old / Buy New Equipment (10 points) After recently purchasing a new IT system, an intern found a new system that she believes will save the organization money. The facts are as follows: Cost of Old System: $270,000 Annual Operating Costs: $70,000 Current Disposal Value of Old System: $25,000 Cost of New System: $150,000 Annual Operating Costs: $50,000 Both systems are expected to last five years. Required Should the new system be purchased? Calculate the savings. Question Answer Should they purchase the new system (yes or no) What is the amount of the savings
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