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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
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 $340000 $590000 Accumulated Depreciation 110000 -0- Remaining useful life 10 years -0- Useful life 0- 10 years Annual operating costs $250000 $181600 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is O $118000 O $(5900) O $25000 O $(59000)
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