Question: Janko Wellspring Inc. has a pump with a book value of $29,000 and a 4-year remaining life. A new, more efficient pump, is available

Janko Wellspring Inc. has a pump with a book value of $29,000

Janko Wellspring Inc. has a pump with a book value of $29,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $50,000. Janko can also receive $8500 for trading in the old pump. The new pump will reduce variable costs by $11,400 per year over its four-year life. The costs not relevant to the decision of whether or not to replace the pump are: O $11,400. $8500. $45,600. $16,600. $29,000.

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