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Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful
Sunland Company is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Remaining useful life > Useful life Annual operating costs Old Machine $410000 O $410000 O $123000 O $82000 O $287000 123000 10 years -0- $328000 New Machine $820000 -0- -0- 10 years $246000 If the old machine is replaced, it can be sold for $32800. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision?
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