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CAPITAL BUDGETINGQUESTION A Chemical company is considering replacing an existing machine with one costing $ 65000 The existing machine was originally purchased two years ago for $ 28000 and is

CAPITAL BUDGETING: QUESTION A Chemical company is considering replacing an existing machine with one costing $ 65,000 The existing machine was originally purchased two years ago for $ 28,000 and is being depreciated by the straight line method over its seven year life period .It can currently be sold for $ 30,000 with no removal costs. The new machine would cost $ 10,000 to install and would be depreciated over five years.

 

May 28 2020 View more View Less

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