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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 31) Planet Design Services, Inc., is considering replacing a machine.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 31) Planet Design Services, Inc., is considering replacing a machine. The following data are available: 31) Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 5 years Annual cash operating costs Replacement Old Machine Machine $650,000 $540,000 10 5 0 $380,000 $162,000 0 0 $108,000 $60,000 The difference between keeping the old machine and replacing the old machine is: A) $138,000 in favor of keeping the old machine B) $920,000 in favor of replacing the old machine C) $138,000 in favor of replacing the old machine D) $920,000 in favor of keeping the old machine
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