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Sooky has a spotter truck with a book value of $43,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero-salvage value. Sooky can purchase a new spotter truck for $123,000 and receive $31,300 in return for trading in its old spotter truck. The old spotter truck has variable manufacturing costs of $78.000 per year. The new spotter truck will reduce variable manufacturing costs by $25,300 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck is Mutiple Choice $31.300 decrease $34,800 increase $123.000 decrease

Sooky has a spotter truck with a book value of $43,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero-salvage value. Sooky can purchase a new spotter truck for $123,000 and receive $31,300 in return for trading in its old spotter truck. The old spotter truck has variable manufacturing costs of $78.000 per year. The new spotter truck will reduce variable manufacturing costs by $25,300 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck is Mutiple Choice $31.300 decrease $34,800 increase $123.000 decrease

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sooky has a spotter truck with a book value of $43,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero-salvage value. (Sooky can purchase a new spotter truck for $123,000 and receive $31,300 in return for trading in its old spotter truck. The old spotter truck has variable manufacturing costs of $78.000 per year. The new spotter truck will reduce variable manufacturing costs by $25,300 per year over the five-year life of the new spotter truck The total increase or decrease in income by replacing the current spotter truck with the new truck is Multiple Choice $31.300 decrease O $34,800 increase $123.000 decrease $31,300 increase G
Transcribed Image Text:Sooky has a spotter truck with a book value of $43,000 and a remaining useful life of five years. At the end of the five years the spotter truck will have a zero-salvage value. (Sooky can purchase a new spotter truck for $123,000 and receive $31,300 in return for trading in its old spotter truck. The old spotter truck has variable manufacturing costs of $78.000 per year. The new spotter truck will reduce variable manufacturing costs by $25,300 per year over the five-year life of the new spotter truck The total increase or decrease in income by replacing the current spotter truck with the new truck is Multiple Choice $31.300 decrease O $34,800 increase $123.000 decrease $31,300 increase G
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