Explain by contrasting accounting and economic, Operation Management

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Explain by contrasting accounting and economic

Because of inflation, a company must replace one of its (fully depreciated) machines at twice the nominal price paid for a similar machine eight years ago. Based on present accounting rules, will the company have covered the entire cost of the new machine through depreciation charges? Explain by contrasting accounting and economic costs.

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Operation Management: Explain by contrasting accounting and economic

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