Prepare a cost comparison of all relevant items

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Reference no: EM131816813

Question: Book Value of Old Equipment Consider the following data concerning the replacement of old equipment by new equipment:

1. Prepare a cost comparison of all relevant items for the next 3 years together. Ignore taxes.

2. Prepare a cost comparison that includes both relevant and irrelevant items.

3. Prepare a comparative statement of the total charges against revenue for the first year. Would the manager be inclined to buy the new equipment? Explain.

Reference no: EM131816813

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