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Oriole Inc. wants to purchase a new machine for $ 4 3 , 5 3 0 , excluding $ 1 , 5 0 0 of

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Oriole Inc. wants to purchase a
new machine for $43,530, excluding $1,500 of installation costs.
The old machine was purchased 5 years ago and had an expected
economic life of 10 years with no salvage value. The old machine
has a book value of $2,100, and Oriole Inc. expects to sell it for
that amount. The new machine will decrease operating costs by
$9,000 each year of its economic life. The straight-line
depreciation method will be used for the new machine for a 6-year
period with no salvage value.
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