6. Landau Co. is deciding whether to replace of an old machine with a new...
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6. Landau Co. is deciding whether to replace of an old machine with a new one. The following information is available: Old Machine Purchase cost sunk cost Remaining useful life 10 years Useful life -0- Annual operating costs $24,000 New Machine $60,000 -0- 10 years $18,000 If the old machine is replaced, it can be sold for $24,000. The change in net income for 10 years from replacing the old machine is a. $24,000 increase b. $0 (zero) c. $30,000 decrease d. $6,000 increase
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