Question: Exercise 13-18 Asset replacement decision LO 13-5 A machine purchased three years ago for $314,000 has a current book value using straight- line depreciation of
Exercise 13-18 Asset replacement decision LO 13-5 A machine purchased three years ago for $314,000 has a current book value using straight- line depreciation of $184,000; its operating expenses are $34,000 per year. A replacement machine would cost $235,000, have a useful life of nine It has an expected salvage value of $79,000 after nine years. The current disposal value of the old machine is $90,000; if it is kept 9 more years, its residual value would be $12.000 and would require S Required Calculate the total costs in keeping the old machine and purchase a new machine Mach Total costs Should the old machine be replaced? O Yes No References eBook & Resources Worksheet Dofficulty 2 Medium 13-05 Make Exercise 13-18 Asset replacement decision LO 13-5appr Leaming opriale asse Type here to search
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