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Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: If the old machine is

Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: If the old machine is replaced, it can be sold for $24,000. Which of the following amounts is relevant to the replacement decision?

Old Machine New Machine

Price: $300,000 $600,000

Accumulated Depreciation: 90,000 0

Remaining Useful Life: 10 years 0

Useful Life: 0 10 years

Annual operating costs: $240,000 $180,600

a. $210,000

b. $300,000

c. $59,400

d. $90,000

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