Does it make sense for alden to replace the current machine

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Alden Ltd is evaluating the purchase of a new machine that will cost $422,000.The existing machine is 200,000.The new machine will result in production increase by 75,000 units.All production is sold a price of $6 per unit .With the new machine costs will decline by$0.40 per unit.Using marginal analysis ,does it make sense for Alden to replace the current machine?

Reference no: EM13301348

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