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QUESTION 6 XYZ Company has a machine with a 5 year useful life for which they paid $100,000, on 01/02/2015, with an expected $5,000 salvage

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QUESTION 6 XYZ Company has a machine with a 5 year useful life for which they paid $100,000, on 01/02/2015, with an expected $5,000 salvage value. On 01/02/2018, they have owned the machine for 3 years and have found a technologically advanced machine that costs $65,000. It has a 4-year useful life and $8,000 salvage value. The machine will save $7,500 a year in operating expenses. The current machine can be sold for $20,000. The issue faced by ABC Company is whether to acquire the new machine or continue to use the original machine. There are a variety of relevant factors to be included in the decision. Which of the following is relevant? a. The difference in useful lives of the two machines b. The depreciation expense of the two machines. c. The cost of the new machine O d. The cost of the old machine

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