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Oriole Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine
Oriole Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $310000 $610000 Accumulated Depreciation 120000 -0- Remaining useful life 10 years -0- Useful life 10 years Annual operating costs $280000 $200600 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is O $(6100) O $208000 O $28000 O $(61000)
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