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Plz be detailed thanks alot Dekatlon International Inc. manufactures volleyballs. Currently, it is considering whether to replace a machine with a more productive machine. The

Plz be detailed thanks alot

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Dekatlon International Inc. manufactures volleyballs. Currently, it is considering whether to replace a machine with a more productive machine. The original useful life of the current machine is 10 years and its remaining useful life is 4 years. The original cost of the current machine was $100,000 and the remaining book value is $50,000. A replacement machine would cost the company $150,000 but annual variable expenses for running the machine would be $60,000. The current machine could be sold in the market for $34,000. The new machine also has an expected future life of 4 years, as new developments are expected. The current annual operating variable expenses are $70,000 for its running costs. Sales are expected at $200,000 per year With the old machine and $220,000 per year with the new replacement. Fixed costs other than depreciation are $80,000 per year in both cases (ignore the time value of money). Which of the following statement is correct? 0 The manager should replace the old machine because the net benet is $103,000. 0 The manager should replace the old machine because the net benet is $4,000. 0 The manager should keep the old machine because the net benet is $103,000. 0 The manager should replace the old machine because the net benet is $17,000. 0 The manager should keep the old machine because the net benet is $17,000

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