Amanda Company is considering the replacement of a machine that is presently used in production. The following data are available: Old Machine New Machine Original cost $200,000 $160,000 Useful life in years 10 5 Current age in years 5 0 Book value $100,000 minus Disposal value now $32,000 minus Disposal value in 5 years 0 0 Annual cash operating costs $20,000 $14,000 Adding all five years together, the total relevant costs to consider if the new machine is purchased is
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