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Pete this assessment Question 15 of 15 Question 15 1 points Save Answer Tarek Corporation is considering buying a new donut maker. This machine will
Pete this assessment Question 15 of 15 Question 15 1 points Save Answer Tarek Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 6 years. The new machine will cost $3,670 a year to operate, as opposed to the old machine, which costs $3,975 per year to operate. Also, because of increased capacity, an additional 20,700 donuts a year can be produced. The company makes a contribution margin of $0.10 per donut. The old machine can be sold for $7,700 and the new machine costs $30,700. The incremental annual net cash inflows provided by the new machine would be: $2,375 $305 $2,070 $5,630
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