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Print Item Machine replacement decision Instructions Labels and Amount Descriptions Differential Analysis Final Questions Instructions A company is considering replacing an old piece of machinery,
Print Item Machine replacement decision Instructions Labels and Amount Descriptions Differential Analysis Final Questions Instructions A company is considering replacing an old piece of machinery, which cost $506 500 and has $365,100 of accumulated depreciation to date with a new machine that has a purchase price $556,060 The old machine could be sold for 5221 500 The annual variable production costs associated with the old machine are estimated to be $82.750 per year for eight years. The variable production costs for the new machine are estimated to be $18.200 per year for eight years Required: a Prepare a diferential analyvau dated September 13 to determine whether to continue with (Aerative t) or replace (Alleme 2) theo machine Refer to the Mats of Labels and Amount Descriptions for the exact wording of the answer choices for test entoes For Mose bores en which you must enter subtracted or negative numbers use a minus syn Where is no amount oral woontoren, enter * A colon) automatically appear if required b. Determine whether the company should continue wit (Alemative 1) or replace tematve 2) Me old machine What is the sun cost in this bon
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