A machine purchased three years ago for $303000 has a current book value using straight-ine...
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Accounting
A machine purchased three years ago for $303000 has a current book value using straight-ine depreciation of $181,000: its operating expenses are $34,000 per yeat, A replacement machine would cost $226,000, have a useful life: of nine years, and would require $9,000 per year in operating expenses. It has an expected salvage value of $62.000 after nine years. The current disposal value of the old machine is $71,000; if it is kept 9 more years, its residual value woukd be $13,000 Required Calculate the total costs in kceping the old machine and purchasing a new machine. Should the old machine be replaced? Keep Old Purchase k Total costs Shoulkd the oid machine be replaced
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