Business
Business, 13.08.2021 01:00, shainaanderson24

Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 6 years. The new machine will cost $3,630 a year to operate, as opposed to the old machine, which costs $3,875 per year to operate. Also, because of increased capacity, an additional 20,300 donuts a year can be produced. The company makes a contribution margin of $0.10 per donut. The old machine can be sold for $7,300 and the new machine costs $30,300. The incremental annual net cash inflows provided by the new machine would be (Ignore income taxes.): a) $2,275
b) $245
c) $2,030
d) $5,270

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Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut...

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