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Business, 16.12.2019 21:31 beckers0115

Chung inc. is considering the replacement of a piece of equipment with a newer model. the following data has been collected:
old equipment
new equipment
purchase price
$225,000
$375,000
accumulated depreciation
90,000
- 0 -
annual operating costs
300,000
240,000
if the old equipment is replaced now, it can be sold for $60,000. both the old equipment's remaining useful life and the new equipment's useful life is 5 years.
which of the following amounts is irrelevant to the replacement decision?

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Answers: 3

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