Question: Andrews Building Inc. has a crane with a book value of $245,000 and a 4-year remaining life. A new crane is available at a cost

Andrews Building Inc. has a crane with a book value of $245,000 and a 4-year remaining life. A new crane is available at a cost of $620,000. Andrews can also receive $48,500 for trading in the old crane. The new crane will reduce variable costs by $145,500 per year over its four-year life. The total impact to Andrews over the cranes four-year life is:

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