Question: Planet Design Services, Inc., is considering replacing a machine. The following data are available: Old Machine $670,000 Replacement Machine $530,000 12 oo Original cost Useful

Planet Design Services, Inc., is considering replacing a machine. The following data are available: Old Machine $670,000 Replacement Machine $530,000 12 oo Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 6 years Annual cash operating costs $380,000 $142,000 $0 $107,000 $61,000 The difference between keeping the old machine and replacing the old machine is O A. $112,000 in favor of replacing the old machine O B. $112,000 in favor of keeping the old machine O C. $910,000 in favor of replacing the old machine OD. $910,000 in favor of keeping the old machine
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