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Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathere Price Old Machine New
Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathere Price Old Machine New Machine $270000 $540000 81000 -0- Accumulated Depreciation Remaining useful 10 years life Useful life Annual operating costs $216000 -0- -0- 10 years $162000 If the old machine is replaced, it can be sold for $21600. The company uses straight-line depreciation with a zero salvage value for an of its assets. Which of the following amounts is relevant to the replacement decision? $54000 $270000 $21600 O $81000
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