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Granfield Company has a piece of manufacturing equipment with a book value of $41500 and a remaining useful life of four years. At the end

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Granfield Company has a piece of manufacturing equipment with a book value of $41500 and a remaining useful life of four years. At the end of the four years the equipment will have sreo salvage value. The market value of the equipment is currently $22,300. Granfield can purchase a new machine for $123,000 and receive $22,300 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by 519,300 per year over the four year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine onoring the time value of money is Mole Choice $23.500 cene $7.200 decrease STR. 200 decrease $53.050 indre $23.500 decres

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