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Original purchase cost $15,500 $25,100 Accumulated depreciation $5,900 Estimated annual operating costs $24,900 $19,800 Remaining useful life 5 years 5 years If sold now,

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Original purchase cost $15,500 $25,100 Accumulated depreciation $5,900 Estimated annual operating costs $24,900 $19,800 Remaining useful life 5 years 5 years If sold now, the current machine would have a salvage value of $10,300. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs c expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number eg. -45 or parenthe es (45)) Retain Replace Machine Machine Net Income Increase (Decrease)

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