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Nguyen Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Nguyen Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $30,100 $42,100 Accumulated Depreciation 15,100 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $38,100 $33,000 If the old machine is replaced, it can be sold for $7,500. What is the net advantage (disadvantage) of replacing the old machine?
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