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Kihei Coffee Producers is replacing one of its old machines and is conducting a lease or sell differential analysis. Costs of leasing the machine are
Kihei Coffee Producers is replacing one of its old machines and is conducting a lease or sell differential analysis. Costs of leasing the machine are Estimated Repair Expense of $17,000, Estimated Insurance Expense of $5,000, and Estimated Property Tax Expense of $2,500. The salvage value of the machinery after the lease will be $0.00. Kihei can sell the old machine for $80,000 minus a commission of 3%. How much could Kihei lease out the machine for, to earn a profit of exactly $10,000? $67,600 $92,100 $77,600 $22,100
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