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The One Good Turn Company is considering the purchase of a high-speed machine to replace its current machine. Selected cost and related data includes:
The One Good Turn Company is considering the purchase of a high-speed machine to replace its current machine. Selected cost and related data includes: Current Machine High Speed Machine Original Cost (2 years ago) $60,000 Purchase Price $90,000 Selling Price if sold now (Salvage Value) $13,400 Removal Cost if sold now $1,400 Operating Costs per Year $125,000 $105,000 Remaining Years of Useful Life 5 5 Salvage Value in 5 years 50 $0 $0 REQUIRED: Compute the net advantage or disadvantage of buying the high-speed machine and make a recommendation.
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