Question
Marigold Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine Price 320000 Accumulated
Marigold Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered:
Old Machine
Price 320000
Accumulated Depreciation 9600
Remaining useful life 10 years
useful life 0
Annual Operating Costs $256000
New machine $650000
Accumulated depreciation 0
Remaining useful life 0
useful life 10 years
Annual operating costs $192000
If the old machine is replaced, it can be sold for $29000. Which of the following amounts is relevant to the replacement decision?
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Corporate Financial Strategy
Authors: Ruth Bender
4th Edition
1136181105, 9781136181108
