lovelyb32p1waxd
lovelyb32p1waxd
24.03.2020 • 
Business

Ocoa Beach Company is considering replacing a machine that is presently used in the production of its product. The following data are available: Old Machine New Machine Original cost $200,000 $160,000 Useful life in years 10 5 Current age in years 5 0 Book value $100,000 ‑ Disposal value now $32,000 ‑ Disposal value in 5 years 500 2000 Annual cash operating costs $20,000 $14,000 Ignoring income taxes, the difference in cost between the old and new machine is: A. $97,500 in favor of the old machine B. $97,500 in favor of the new machine C. $98,000 in favor of the new machine D. $98,000 in favor of the new machine

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