Franklin Printing Company is considering replacing a machine that has been used in its factory...
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Franklin Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows old Machine Cost of machine, ten-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding deprecation Annual Annual revenue Current estimated selling price of the machine $107,400 10,740 operating expenses 94,500 36,100 $138,000 Cost of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, exdusive of depreciation 18,500 enufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine
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