Question: ptin Progress Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment
ptin Progress Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment $322000 128800 New Equipment $528000 Purchase price Accumulated depreciation Annual operating costs -0- 424000 365000 If the old equipment is replaced now, it can be sold for $87700. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) Inet effect on current year net income) of replacing the old equipment with the new equipment is (don't consider annual operating costs in the computation) O $(17900) O $(102000) $128800 $87700
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