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Rory Company has an old machine with a book value of $77,000 and a remaining five-year useful life. Rory Is considering purchasing a new machine

image text in transcribed Rory Company has an old machine with a book value of $77,000 and a remaining five-year useful life. Rory Is considering purchasing a new machine at a price of $104,000. Rory can sell Its old machine now for $79,000. The old machine has varlable manufacturing costs of $34,000 per year. The new machine will reduce varlable manufacturing costs by $13,600 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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