Question: Indium Services, Inc., is considering replacing a machine. The following data are available: Old Machine Replacement Machine Original cost $630,000 $490,000 Useful life in years
Indium Services, Inc., is considering replacing a machine. The following data are available: Old Machine Replacement Machine Original cost $630,000 $490,000 Useful life in years 10 5 Current age in years 5 0 Book value $350,000 -- Disposal value now $112,000 -- Disposal value in 5 years -- -- Annual cash operating costs $98,000 $56,000 For the decision to keep the old machine, the relevant costs of keeping the old machine is ________
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