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QUESTION 42 Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: New Machine Price Old Machine 300,000 90,000 600,000 Accumulated Depreciation -0- Remaining useful life Useful life 10 years -0- Annual operating costs 240,000 If the old machine is replaced, it can be sold for 24,000. The net advantage (disadvantage) of replacing the old machine is 18,000 O 24,000 (6,000) (60,000) -0- 10 years 180,600 2 points Save