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Question 21 of 50 View Policies Current Attempt in Progress < -/5 ! Crane Company is contemplating the replacement of an old machine with
Question 21 of 50 View Policies Current Attempt in Progress < -/5 ! Crane Company is contemplating the replacement of an old machine with a new one. The following information has been gathered Old Machine New Machine Price $200000 $400000 Accumulated 60000 Depreciation Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating $165000 $120000 costs If the old machine is replaced, it can be sold for $16000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is O $(40000) CO $16500 O $66000 O $(4000)
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