Differential analysis
old machine | New machine | |
New machine cost | 520000 | |
Operating cost | 2150000 | 1560000 |
Salvage value | -20800 | |
Total cost | 2150000 | 2059200 |
Net advantage = 2150000-2059200 = 90800
So answer is b) $90800
Current Attempt in Progress Coronado Industries is contemplating the replacement of an old machine with a...
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