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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

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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 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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