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to improve the efficiency of operations in ferms of both speed and reduction in the number of colects. The companys finance department has compled pertinent

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to improve the efficiency of operations in ferms of both speed and reduction in the number of colects. The companys finance department has compled pertinent data to conduct a marginal cost-benett andisis for tha proposed equipment replaciment The cash oulay for new equipment would be \$546,700. The net salvage value of the od equipment is $325,000. The botal benefits over the lfe of she new equipment (measurnd in tody/s dolin) would be $970,000. The sum of benefts from the temaining He of the old equipment (measured in foday's dolaris) would be $345,000 a. What is the marpiral benefit of the proposed equpment replacerenen? b. What is the marginal cost of the proposed equipment replacemen? c. What is the net fenefis of the proposed equigment replacement? d. What would you recommend the firm do? Why? a. The marginal benefin of the proposed equpenent replacemens i (Pound io the neareat dolic) t. The marginal cout of the proposed sovipment replacement is 1 (Reund to the nearst dolier) C. The net benelt of the proposed equipment replacement is 1 (Round to he narest dolar) d. The fim should (Solect the best andwer below) replace the old equipmeni beciuse the net proft is positive. do not replase the old equipment because the net proff is pesitve

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