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QUESTION 25 4 points Save Answer 24. The following information applies to questions 24 and 25: James company is contemplating the replacement of an old
QUESTION 25 4 points Save Answer 24. The following information applies to questions 24 and 25: James company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Purchase Price $250,000 $500,000 Accumulated Depreciation -0- Annual operating costs $200,000 $150,500 If the old machine is replaced now, it can be sold for $25,000. Both the old machine's remaining useful life and the new machine's useful life is 10 years. Which of the following amounts is irrelevant to the replacement decision? a. $200,000 b. $150,000 C. $250,000 d. $175,000 QUESTION 26 4 points Save Answer -0- 25. The following information applies to questions 24 and 25: James company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $250,000 $500,000 Accumulated Depreciation 75,000 Remaining useful life 10 years Useful life 10 years Annual operating costs $200,000 $150,500 If the old machine is replaced, it can be sold for $25,000. The net advantage (disadvantage) of replacing the old machine is a. $15,000 -O- b. $20,000 C. $(5,000) d. $(50,000)
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