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Tamarisk Company has a factory machine witha book value of $159.000 and a remaining usefullife of 5 years. A new machine is available at a

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Tamarisk Company has a factory machine witha book value of $159.000 and a remaining usefullife of 5 years. A new machine is available at a cost of $246.500. This machine will have a 5 -year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $603,500 to $499,000. Prepare an analysis that shows whether Tamarisk should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, eg. 15,000,(15,000))

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