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Munoz Company pald $102000 to purchase a machine on January 1. Year 1 . During Year 3, a technological breakthrough resulted in the development of

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Munoz Company pald $102000 to purchase a machine on January 1. Year 1 . During Year 3, a technological breakthrough resulted in the development of a new machine that costs $106,000. The old machine cosis $61,000 per year to operate, but the new machine could be operated for only $13,000 per year. The new machine. which will be avaliable for dellvery on January 1, year 3 , has an expected useful life of five years. The old machine is more durable and is expected to have a remaining useful life of five years. The current market value of the old machine is $35,000. The expected salvage value of both machines is zero. Required Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be teplaced

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