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Starling Co. is considering disposing of a machine with a book value of $24,200 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 $24,200 and estimated remaining life of five years. The old machine can be sold for 55,100. A new high-speed machine can be purchased at a cost of 74,000 . It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs wil be reduced from $22,600 to $20,800 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is a. decrease of $77,870 b. decrease of $59.900 c. increase of $77,870 d. increase of $59,900

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