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Business, 27.04.2021 23:50 payshencec21

Deep Channel Ferry Company is evaluating whether to purchase a more fuel-efficient boat or continue to use the boat they currently own. Both boats are identical except for the engine. The fuel-efficient boat costs $620,000, has an estimated service life of five years, has no salvage value, and will have variable operating costs of $100,000 per year. The boat currently owned had an original cost of $320,000, has an existing book value of $160,000, has an estimated remaining service life of five years, has no salvage value at the end of its service life, has a current disposal value (now) of $120,000, and has variable operating costs of $200,000 per year. Ignoring present value and tax considerations, what should Deep Channel do

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