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Business, 06.03.2020 19:11 jakester00792

Company XYZ is considering replacing an old machine that is presently used in production, the following data is available: Old Machine New Machine Original Cost $60,000 $45,000 Current Age 10 Years 0 Book Value $25,000 - Disposal Value Now $8,000 - Disposal Value in 5 Years $2,000 $0 Annual Cash Operating Costs $12,000 $4,000 Which course of action is the least costly and by how much at the end of 5 years?

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