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Business, 23.04.2020 19:35 tayler6289

Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected:Old Equipment New EquipmentPurchase price $225,000 $375,000Accumulated depreciation 90,000 - 0 -Annual operating costs 300,000 240,000If 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. The net advantage (disadvantage) of replacing the old equipment with the new equipment isQuestion 40 Chung Inc. is considering the replacemA. $90,000B. $60,000C. $(15,000)D. $(75,000)

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