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Business, 03.12.2019 19:31 alanahjones63

Ex 25-9 machine replacement decision obj. 1 a company is considering replacing an old piece of machinery, which cost $105,000 and has $55,000 of accumulated depreciation to date, with a new machine that has a purchase price of $83,000. the old machine could be sold for $56,300. the annual variable production costs associated with the old machine are estimated to be $8,500 per year for eight years. the annual variable production costs for the new machine are estimated to be $5,000 per year for eight years. a. prepare a differential analysis dated april 29 to determine whether to continue with (alternative 1) or replace (alternative 2) the old machine. b. what is the sunk cost in this situation?

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