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Business, 28.05.2021 16:40 quanharris2k19

Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine
Price $290000 $590000
Accumulated Depreciation 87000 -0-
Remaining useful life 10 years -0-
Useful life -0- 10 years
Annual operating costs $232000 $172000
If the old machine is replaced, it can be sold for $24000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is:.
a. $(5900).
b. $(59000).
c. $23200.
d. $34000.

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