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Rory Company has an old machine with a book value of ( $ 75,000 ) and a remaining five-year useful life. Rory is considering purchasing

image text in transcribed Rory Company has an old machine with a book value of \\( \\$ 75,000 \\) and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of \\( \\$ 102,000 \\). Rory can sell its old machine now for \\( \\$ 89,000 \\). The old machine has variable manufacturing costs of \\( \\$ 31,000 \\) per year. The new machine will reduce variable manufacturing costs by \\( \\$ 12,400 \\) per year over its five-year useful life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Prepare a keep or replace analysis of income effects for the machines

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