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please help :) will up vote Exercise 13-18A (Algo) Asset replacement decision LO 13-5 A machine purchased three years ago for $301,000 has a current
please help :) will up vote
Exercise 13-18A (Algo) Asset replacement decision LO 13-5 A machine purchased three years ago for $301,000 has a current book value using straight-line depreciation of $192,000; its operating expenses are $31,000 per year. A replacement machine would cost $228,000, have a useful life of ten years, and would require $12,000 per year in operating expenses. It has an expected salvage value of $66,000 after ten years. The current disposal value of the old machine is $78,000; if it is kept 10 more years, its residual value would be $19,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replacedStep by Step Solution
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