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need to know the two blanks. thanks! A machine purchased three years ago for $317,000 has a current book value using straight-line depreciation of $188,000;
need to know the two blanks. thanks!
A machine purchased three years ago for $317,000 has a current book value using straight-line depreciation of $188,000; its operating expenses are $33,000 per year. A replacement machine would cost $225,000, have a useful life of ten years, and would require $13,000 per year in operating expenses. It has an expected salvage value of $76,000 after ten years. The current disposal value of the old machine is $89,000; if it is kept 10 more years, its residual value would be $14,000. Required Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced Step by Step Solution
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