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Management of Plescencia Corporation is considering whether to purchase a new model 370 machine costing $534.000 or a new model 220 machine costing 3422000 to

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Management of Plescencia Corporation is considering whether to purchase a new model 370 machine costing $534.000 or a new model 220 machine costing 3422000 to replace a machine that was purchased years ago for $473.000. The old machine was used to make product 143L broke down last week. Untunately, the old machine cannot be repaired Management has decided to buy the new model 220 machine. It has less coach than the new model 370 machine, but its capacity w ent to continue making product 143L Management also considered, but rejected, the native of simply dropping product that were done, stead of investing $422.000 in the new machine the money could be rewed in project mat would returns total of $59000 In mang the decision to buy the model 220 machine rather than the model 370 machine, the sun cost was M e Choice 02.000 Oo oo 5534000

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