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When Deciding to Lease a New Cutting Machine or Continue

Question 198

Multiple Choice

When deciding to lease a new cutting machine or continue using the old machine, the following costs are relevant EXCEPT the:


A) $50,000 cost of the old machine
B) $20,000 cost of the new machine
C) $10,000 selling price of the old machine
D) $3,000 annual savings in operating costs if the new machine is purchased

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