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Waterways is considerin the replacement of aantiquated machine that has beern slowing downproxluction because of breakdowris and added maintenance.The operatios maager estimates that this machine
Waterways is considerin the replacement of aantiquated machine that has beern slowing downproxluction because of breakdowris and added maintenance.The operatios maager estimates that this machine still has 2 more years of possible use. The machine produces an average of 50 units per day at a cost of $6.50 perunit, whereas other similar machines are producing twice that much. The units sell for $8.50. Sales are equal to production on these units, and production runs for 260 days cach ycar. The replaccmcnt machinc would cost $55,000 and havc a 2 ycar lifc. Given the information above, what are the conscquences of Waterways replacing the machinc that is slowing down production becausc of brcakdowns? Replacing the machinc will result in a of S Watcrways kccp the old machinc
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