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Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price Accumulated Depreciation $320000 $580000 120000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $254000 $194600 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is O $(5800) O $25400 O $38000 O $(58000)
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