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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Begley, Inc. is contemplating the replacement of an old machine with a new one. The following information has been gathered:
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Old Machine New Machine
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Price $250,000 $500,000
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Accumulated Depreciation 75,000 -0-
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Remaining useful life 10 years -0-
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Useful life -0- 10 years
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Annual operating costs $200,000 $150,500
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Â
Â
If the old machine is replaced, it can be sold for $20,000.
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Which of the following amounts is relevant to the replacement decision?
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