Management of Plascencia Corporation is considering whether to purchase a new modes 370 machine costing $360,000 or a ne

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Management Of Plascencia Corporation Is Considering Whether To Purchase A New Modes 370 Machine Costing 360 000 Or A Ne 1 (20.61 KiB) Viewed 12 times

Management of Plascencia Corporation is considering whether to purchase a new modes 370 machine costing $360,000 or a new model 220 machine costing $340,000 to replace a machine that was purchased 7 years ago for $348,000. The old machine was used to make product 143L until it broke down last week. Unfortunately, the old machine cannot be repaired Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product 1431 Management also considered, but rejected, the alternative of simply dropping product 143L If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $411.000. in making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was Murgle Choce O $8,000 $20,000 $41000 $12.000