Ferris Company has an old machine that is fully depreciated but has a current salvage...
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Ferris Company has an old machine that is fully depreciated but has a current salvage value of $5,000. The company wants to purchase a new machine that would cost $60,000 and have a 5-year useful life and zero salvage value. Expected changes in annual revenues and expenses if the new machine is purchased are: Increased revenues $63,000 Increased expenses: Salary of additional operator $20,000 Supplies 9,000 Depreciation 12,000 Maintenance 4,000 45,000 Increased net income $18,000 Required
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