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In Problem 4, suppose that you just discovered that the production engineers had slipped u
In Problem 4, suppose that you just discovered that the production engineers had slipped up twice in their statement of the relevant facts concerning the potential purchase of the new machine: l The engineers failed to note that in addition to the $60,000 invoice price for the new machine, $2,000 must be paid for installation. l The current salvage value of the old machine is not $8,000, but rather only $3,000. On the basis of this new information, what are the relevant cash flows for this replacement problem?
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