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A machine purchased three years ago for $300,000 has a current book value using straight-line...

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Accounting

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A machine purchased three years ago for $300,000 has a current book value using straight-line depreciation of $188,000; its operating expenses are $31,000 per year. A replacement machine would cost $232,000, have a useful life of nine years, and would require $8,000 per year in operating expenses. It has an expected salvage value of $74,000 after nine years. The current disposal value of the old machine is $82,000; if it is kept 9 more years, its residual value would be $15,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced

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