A commercial oven with a book value of $67,000 has an estimated remaining 5 year life.A proposal is offered to sell the oven for $8,500 and replace it with a new oven costing $110,000.The new machine has a 5-year life with no residual value.The new machine would reduce annual maintenance costs by $23,000.Provide a differential analysis on the proposal to replace the commercial oven.

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The Answer of A commercial oven with a book value of $67,000 has an estimated remaining 5 year life.A proposal is offered to sell the oven for $8,500 and replace it with a new oven costing $110,000.The new machine has a 5-year life with no residual value.The new machine would reduce annual maintenance costs by $23,000.Provide a differential analysis on the proposal to replace the commercial oven.

A Commercial Oven with a Book Value of $67,000 Has