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Please answer Gingerbread Resources Inc. is considering the purchase of an Industrialized Oven to replace the oven now in use. Selected information on the two
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Gingerbread Resources Inc. is considering the purchase of an Industrialized Oven to replace the oven now in use. Selected information on the two machines follows: Original Oven Industrialized Oven Original cost/New cost $ 350,000 $ 500,000 Accumulated depreciation to date $ 250,000 $ JO Money spent on repairs to date $ 20,000 $ 0 Estimated cost per year to operate $ 50,000 $ 30,000 Salvage Value of old machine $ 160,000 Remaining years of useful life 15 5 Which of the following costs is NOT RELEVANT? years years Salvage Value of Old Machine O Cost of new machine Money spent on repairs Estimated cost to operateStep by Step Solution
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