Question: Multiple Choice Question 148 Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: New
Multiple Choice Question 148 Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: New Machine $780000 Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine $390000 117000 10 years -0. $312000 10 years $234000 If the old machine is replaced, it can be sold for $31200. The company uses straight-line depreciation with a zero salvage value for all of its assets Which of the following amounts is relevant to the replacement decision? $31200 $31200 $390000 $46800
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