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37. A commercial oven with a book value of $67,000 has an estimated remaining 5 year life. A proposal is offered to sell the
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Answer #1

Differential Analysis

Reduction in Annual cost $23000
Number of years 5
Total Differential cost reduction 115000 23000*5
sale proceeds of oven 8500
Differential benefit of buying new oven 123500$ 115000+8500
Less cost on new equipment 110000$
Net differential reduction in cost by replacing old commercial oven 13500$ 123500-110000
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