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When a company is deciding whether to buy a new cutting machine or continue to use the old machine, the following costs are relevant to
When a company is deciding whether to buy a new cutting machine or continue to use the old machine, the following costs are relevant to this decision EXCEPT FOR the:
$4,000 annual depreciation of the old machine
$8,000 annual savings in operating costs if the new machine is purchased
$80,000 acquisition cost of the new machine
$5,000 market value (selling price) of the old machine
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