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Business, 28.07.2020 16:01 yoyo5752

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $53,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B
Cost $115,000 $125,000
Variable manufacturing costs per year 19,000 15,000
Should Xinhong keep or replace its manufacturing machine?If the machine should be replaced, which alternative new machine should Xinhong purchase?

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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book v...
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