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Homework answers / question archive / Skiles Coporation is a manufacturer of classic rocking chairs
Skiles Coporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and finishing machine for over 10 years and believes that it may be time to replace the machine. The company is trying to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine,
Old Machine: Original cost 1443,400 Current accumulated depreciation 312,900 Estimated annual variable manufacturing costs for machine 72,150 Estimated selling price of machine 192,700 Estimated remaining useful life (in years) 6 New Machine: Purchase cost 5794,800 Estimated annual vanable manufacturing costs for machine 45,650 Estimated residual value 0 Estimated useful life (in years) 6
Select the relevant or irrelevant Information below:
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