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RW Engineering has a machine with four years remaining useful life. The machine incurs $62,000 fixed and $43,000 in variable costs yearly. RW is considering
RW Engineering has a machine with four years remaining useful life. The machine incurs $62,000 fixed and $43,000 in variable costs yearly. RW is considering a replacement that costs $102,000 and has a four-year useful life. It will incur $49,000 fixed and $28,000 variable costs each year. If the old machine has no sale or scrap value, what should RW do? Why?
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