Question: HELP PLEASEEEE!! Dragoo Building Incorporated has a pump with a book value of $252,000 and a four-year remaining life. A new pump is available at
Dragoo Building Incorporated has a pump with a book value of $252,000 and a four-year remaining life. A new pump is available at a cost of $627,000. Dragoo can receive $49,200 for trading in the old pump. The old pump has variable costs of $322,000 per year. The new pump will reduce variable costs by $147,300 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 $11,400 O Increase of $589,200. O Decrease of $11,400 O Decrease of $49,200 Decrease of $627,000
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