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Rory Company has a machine with a book value of $81,000 and a remaining five year useful life. A new machine is available at a

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Rory Company has a machine with a book value of $81,000 and a remaining five year useful life. A new machine is available at a cost of $122.000, and Rory can also receive $89,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $22,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) 0.62 points eBook Hint Incremental Income From Replacing Machine Reduction in variable manufacturing costs $ Cost of new machine Cash received from trade in of old machine 122.000 Print References 89,000 Incremental income (incremental cost) $ 211.000 Should the machine be replaced

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