Question: 24) Smith Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement
24) Smith Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision? Old Machine Replacement Machine Original cost $70,000 $45,000 Remaining useful life in years 5 5 Current age in years 50 Book value $33,000 Current disposal value in cash $10,000 Future disposal value in cash (in 5 years) $0 $0 Annual cash operating costs $7,000 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? A) the current disposal value of the old machine B) the annual cash operating costs C) the sales price of the new machine D) the original cost of the old machine
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