Question: Dragoo Building Incorporated has a pump with a book value of $249,000 and a four-year remaining life. A new pump is available at a cost

Dragoo Building Incorporated has a pump with a book value of $249,000 and a four-year remaining life. A new pump is available at a cost of $624,000. Dragoo can receive $48,900 for trading in the old pump. The old pump has variable costs of $319,000 per year. The new pump will reduce variable costs by $147,000 per year over its four-year life. The total impact to Dragoo Building Incorporated over the pump's four-year life is: Multiple Choice Increase of $12,900. Increase of $588,000. Decrease of $12,900. Decrease of $624,000. Decrease of $48,900

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