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Your firm is considering whether to replace an existing machine with a new one The existing machine was purchased five years ago for $200,000 and

Your firm is considering whether to replace an existing machine with a new one The existing machine was purchased five years ago for $200,000 and has an economic life of ten years, that is, it will last for another five years It will have no salvage value The operating costs for this machine are $25,000 per year This machine can be sold today for $80,000 The new replacement machine will do exactly the same job as the existing machine This machine costs $140,000 and has an economic life of

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