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Your answer is partially correct. Bonita Company has a factory machine with a book value of $152,000 and a remaining useful life of 4 years.
Your answer is partially correct. Bonita Company has a factory machine with a book value of $152,000 and a remaining useful life of 4 years. A new machine is available a a cost of $252,000. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $600,000 to $503,000. Prepare an analysis that shows whether Bonita should retain or replace the old machine. (If on amount reduces the net income then enter with a negotive sign preceding the number or parenthesis, e.g. 15,000,(15,000)
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