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What are the total relevant costs of keeping old equipment

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Question

Express, Inc., is considering replacing equipment. The following data are available:

Old Equipment Replacement Equipment

Original cost $40,000 $31,000

Disposal value now $7,000 0

Disposal value in 5 years 0 0

Annual cash operating costs $7,900 $7,000

What are the total relevant costs of keeping the old equipment?

Reference no: EM132329144

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