What first cost should be assigned to the existing system

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Reference no: EM131495300

A material handling system was purchased 3 years ago for $123816. Two years ago it required substantial upgrading at a cost of $16340. It once again is requiring an upgrading cost of $24254. Alternately, a new system can be purchased today at a cost of $200688, with a salvage value of $19120. The existing machine could be sold today for $49996. In an economic replacement analysis, what first cost should be assigned to the existing system?

Reference no: EM131495300

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