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

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

Old Machine

Replacement

Machine

Original cost

$25,000

$35,000

Remaining useful life in years

1

5

Current age in years

5

0

Book value

$5,000

Current disposal value in cash

$3,000

Future disposal value in cash (in 5 years)

$0

$2,000

Annual cash operating costs

$7,000

$4,000

Which of the information provided in the table is irrelevant to the replacement decision?

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