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Managementmust decide whether to replace old jets with new, more fuel-efficient ones. A jet originally cost $80 million and now has an Accumulated Depreciation balance

Managementmust decide whether to replace old jets with new, more fuel-efficient ones. A jet originally cost $80 million and now has an Accumulated Depreciation balance of $65 million. It has a remaining useful life of four years, with no salvage value. The company is considering replacing this plane with a new Boeing 747, which would cost $110 million. If the new plane is acquired, variable manufacturing costs are expected to decrease from $10 million to $6 million annually, and the old unit could be sold for $5 million. The company's plan is to sell the 747 four years from now for $90 million. Please help me with incremental analysis.

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