Give a differential analysis on the proposal to replace

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An airplane with a book value of $49,000 has an estimated five-year life. A proposal is offered to sell the old airplane for $30,000 and replace it with a new airplane at a cost of $64,000. The new airplane has a five-year life with no salvage value. The new airplane would reduce annual direct labor costs by $8,000. Provide a differential analysis on the proposal to replace the airplane.

Reference no: EM13128764

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