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Multiple Choice Question 149 Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old
Multiple Choice Question 149 Bramble Corp. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $324000 $624000 97200 -0- Accumulated Depreciation Remaining useful life Useful life 10 years -0- -0- 10 years Annual operating costs $259200 $197600 If the old machine is replaced, it can be sold for $24000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is $(6240) $25920 $(62400) $16000
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