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Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine
Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $300000 $600000 Accumulated Depreciation 90000 Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $240000 $180600 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is $24000 $18000 $(60000) $(6000)
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