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Rory Company has a machine with a book value of $95.000 and a remaining five-year useful life. A new machine is available at a cost
Rory Company has a machine with a book value of $95.000 and a remaining five-year useful life. A new machine is available at a cost of $117000 and Rory can also receive $87,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $19.500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Reduction in vainable manufacturing costs Cost of new machine Cash ucived from trade in of old machine 19.500 0 Incremental como (incremental cost 5 19.500 Should the machine betoplaced Yes
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