Question: Down East Chemicals is considering replacing its existing computer system with a new computer system. The new system can offer-considerable savings in computer processing and

 Down East Chemicals is considering replacing its existing computer system with
a new computer system. The new system can offer-considerable savings in computer

Down East Chemicals is considering replacing its existing computer system with a new computer system. The new system can offer-considerable savings in computer processing and inventory management costs. Information about the existing system and the new system follow: Existing Computer New Computer Original cost $10,000 $15,000 Annual operating cost $ 3,500 $ 2,000 Accumulated depreciation $ 6,000 Current salvage value of the existing system $ 4,000 Remaining life in 5 years 5 years Salvage value in 5 years $ 0 $ 0 Annual depreciation $ 2.000 $ 3.000 Relevant costs for this decision include Relevant costs for this decision include: the current salvage value of the existing system. accumulated depreciation. the remaining life of 5 years. the original cost of the existing system

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