Question: Planet Design Services, Inc., is considering replacing a machine. The following data are available: Original cost Useful life in years Current age in years

Planet Design Services, Inc., is considering replacing a machine. The following data

Planet Design Services, Inc., is considering replacing a machine. The following data are available: Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 4 years Annual cash operating costs A. $608,000 B. $106,000 C. $424,000 D. $586,000 Replacement Old Machine Machine $660,000 $510,000 8 4 4 0 $380,000 $162,000 $0 $0 $106,000 $57,000

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