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Current Attempt in Progress Coronado Industries is contemplating the replacement of an old machine with a new one. The follow

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Answer #1

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

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