Question: A machine was bought for $ 7 9 0 0 at the start of the year and has an 8 - year life. If sold

A machine was bought for $7900 at the start of the year and has an 8-year life. If sold at the end of the year it would sell for $7150. The general rate of inflation is 4% and the asset's replacement cost at the year - end is $8160. It is expected to produce 500 units per year which could be sold for $2 each.
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