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Machine replacement decision A company is considering replacing an old piece of machinery, which cost $ 6 0 0 , 6 0 0 and has
Machine replacement decision
A company is considering replacing an old piece of machinery, which cost $ and has $ of accumulated depreciation to date, with a new machine that has a purchase price of $ The old machine could be sold for $ The annual variable production costs associated with the old machine are estimated to be $ per year for years. The annual variable production costs for the new machine are estimated to be $ per year for years.
a Prepare a differential analysis dated December to determine whether to continue with Alternative or replace Alternative the old machine. If an amount is zero, enter If required, use a minus sign to indicate a loss.
Differential Analysis
Continue with Alt or Replace Alt Old Machine
December
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