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Oliver Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered Old Machine New Machine Cost

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Oliver Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered Old Machine New Machine Cost $250,000 $500,000 Accumulated Depreciation 75,000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $200,000 $150,500 If the old machine is replaced, it can be sold for $20,000 The net advantage (disadvantage) of replacing the old machine is O a $(50,000) Ob $20,000 O c $(5,000) Od $15,000

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