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Question 15 Sheffield Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment

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Question 15 Sheffield Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $212000 $352000 Accumulated depreciation 84800 -0- Annual operating costs 244000 244000 If the old equipment is replaced now, it can be sold for $58000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old equipment with the new equipment is $58000 O $84800 $(109000) $(69000)

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