Question: Question Wonder Works Pte Ltd ( ' WW ' ) produces ceramic hair curlers to sell to department stores. The production equipment costs WW $
Question
Wonder Works Pte Ltd WW produces ceramic hair curlers to sell to department stores. The production equipment costs WW $ four years ago. Currently, the net book value stands at $ An improved version of the equipment is available now for $ The new machine has a useful life of five years. The disposal value at that point in time is estimated to be $
The new machine is expected to increase unit sales by curlers per annum. The estimated unit selling price is $ for the first year.
The following table provides the unit
costs for the first year:
table$
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