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Marigold Company is considering replacing equipment with a cost of $29300, accumulated depreciation of $21000, and a 2 year remaining useful life. The new equipment
Marigold Company is considering replacing equipment with a cost of $29300, accumulated depreciation of $21000, and a 2 year remaining useful life. The new equipment has a cost of $42100 and a useful life of 6 years. The seller has offered a trade-in allowance of $7000. The new equipment is much more efficient. Marigold projects cost savings of $10400 per year if the new equipment is purchased. Which of the following is not relevant in deciding whether to retain or replace equipment? 2100, and a 2 year remaining us to be. The new equipment has a cost of $420and a se lecting O Book value of existing equipment. Cost savings. O Cost of new equipment. Trade-in allowance of existing equipment
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