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The manager of Hayne Ltd is considering the replacement of some equipment. This equipment has zero book value but its current market value is R900.
The manager of Hayne Ltd is considering the replacement of some equipment. This equipment has zero book value but its current market value is R900. One possible alternative is to invest in new equipment, which costs R19 000. This new equipment would produce estimated annual operating cash savings of R6 250. The estimated useful life of the new equipment is four years. Hayne Ltd uses straight-line depreciation. The investment in the new equipment would require an additional investment in working
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