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Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price

Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $430000 $860000 Accumulated Depreciation 129000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $344000 $258000 If the old machine is replaced, it can be sold for $34400. The company uses straight-line depreciation with a zero salvage value for all of its assets. Which of the following amounts is relevant to the replacement decision?

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