A Company Is Deciding Between Purchasing Two Machines Machine A Costs 451 000 And Machine B Costs 421 000 The Purchas 1 (21.24 KiB) Viewed 10 times
A Company Is Deciding Between Purchasing Two Machines Machine A Costs 451 000 And Machine B Costs 421 000 The Purchas 2 (25.11 KiB) Viewed 10 times
A company is deciding between purchasing two machines Machine A costs $451,000 and Machine B costs $421,000. The purchase is to replace a machine that i was purchased 9 years ago for $437,000. The old machine was used to make product XYZ until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy Machine B. It has less capacity than Machine A but enough to continue making product XYZ. Management also considered, but rejected, the alternative of discontinuing product XYZ. If that were done, instead of investing $421,000 in the new machine, the money could be invested in a project that would return a total of $14,000 in making the decision to buy Machine B rather than Machine A, the differential cost is Multiple Choice O $6,000 $30,000 www Maxt
O $6,000 $30,000 $14.000 $16,000
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