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Starling Co. is considering disposing of a machine with a book value of $24,900 and estimated remaining life of five years. The old machine can

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Starling Co. is considering disposing of a machine with a book value of $24,900 and estimated remaining life of five years. The old machine can be sold for $5,300. A new high-speed machine can be purchased at a cost of 71,700 , It will have a usehul life of five yoars and no residual value. It is estimated that the annual variable manufacturing costs wit be reduced from $23,100 to $19,500 if the new machine is purchased. The fiveryear differential effect on profit from replacing the machine is a(n) a. increate of 562,920 b. decrase of 562920 C. increase of 548,490 1. degnat of 34,400

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