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The following information is provided about a particular machine used by a company in its operations. The machine is technological in nature and new models
The following information is provided about a particular machine used by a company in its operations. The machine is technological in nature and new models are coming out all the time. The machine originally cost $80 000 and it would cost $140000 now to replace this machine. The company expects to receive $112000 (discounted to present value) in cash inflows from using this machine over the next five years. If we were to sell it now. the machine would bring in $60000. Consider the decision usefulness of accounting information produced when using each of the above figures as a measure of the value of the machine. In particular, consider usefulness from the perspective of the following stakeholders: Shareholders Creditors Employees
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