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Peter Takesha, the manager of testing services at a medical diagnostics firm, purchased a new lab testing machine last year for $30,000. This year a

Peter Takesha, the manager of testing services at a medical diagnostics firm, purchased a new lab testing machine last year for $30,000. This year a new machine, which is faster and more reliable than Peters current model, is on the market. In deciding whether to purchase the new machine, should Peter consider how much he paid for the old machine? Should he consider the value of the old machine in the used equipment market?

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