Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

If the old machine is replaced, it can be sold for $20,000.
1. Which of the following amounts is relevant to the replacement decision?A) $175,000B) $250,000C) $49,500D) $0
2. The net advantage (disadvantage) of replacing the old machine isA) $15,000B) $20,000C) $(5,000)D)$(50,000)

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Old Machine S250,000 75.000 10 years New Machine Price S500,000 Accumulated Depreciation Remaining useful life Useful life Annual operating costs 0- 10 years S200,000 S150,500