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Author Question: Hartley's Meat Pies is considering replacing its existing delivery van with a new one. The new van ... (Read 55 times)

segrsyd

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Hartley's Meat Pies is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow:

Existing vanNew van
Original cost$50,000$93,000
Annual operating cost$17,500$11,000
Accumulated depreciation$32,000-
Current salvage value of the existing van$23,500-
Remaining life10 years10 years
Salvage value in 10 years$ 0$ 0
Annual depreciation$1,800$9,300
Relevant costs for this decision include ________.
◦ the original cost of the existing van
◦ accumulated depreciation
◦ the annual operating cost
◦ the book value of the existing van


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Marked as best answer by segrsyd on Mar 6, 2021

yahahah24021

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segrsyd

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


smrtceo

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Reply 3 on: Yesterday
Gracias!

 

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