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Part C-Raphael's Pizza is considering replacing an industrial oven at one of their locations. Consider the data provided in the table below and assume a
Part C-Raphael's Pizza is considering replacing an industrial oven at one of their locations. Consider the data provided in the table below and assume a 3-year useful life for the new oven. Using the replacement analysis technique 1, when should the old oven be replaced? New machine Old machine Year (EUAC) (Marginal Cost) $20,200 $19,638 $19,451 $18,780 $21,450 $21,640 3 It shouldn't be replaced. Immediately After year 3. After year 1/ Beginning of year 2 After year 2/ Beginning of year 3
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