Question: Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine Original

Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available:

Old Machine Replacement Machine
Original cost $60,000 $35,000
Remaining useful life in years 5 5
Current age in years 5 0
Book value $25,000
Current disposal value in cash $8,000
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 annual operating cost of the old machine

B.

The current disposal value of the old machine

C.

The original cost of the old machine

D.

Both A and C

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