ABX Co. is considering two alternatives to replace some existing manufacturing equipment. The following data have been gathered concerning these two alternatives:

	Machine A	Machine B
Purchase cost new	$300,000	$300,000
Overhaul costs needed year 4	$10,000	20,000
Annual cash operating costs	$130,000	$120,000
Salvage value at the end of 8 years	$20,000	$30,000

ABX Co. uses a 10% discount rate and the incremental cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years. Which of the above costs are not relevant to the comparison of the alternatives?

Select one:

a. Annual cash operating costs

b. Purchase cost new

c. Salvage value at the end of 8 years

d. Overhaul costs needed year 4