Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The...

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Accounting

Vaughn Manufacturing is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine New Machine
Price $350000 $630000
Accumulated Depreciation 120000 -0-
Remaining useful life 10 years -0-
Useful life -0- 10 years
Annual operating costs $251000 $187600

If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is

a. $25100

b. $(6300)

c. $28000

d. $(63000)

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