Jimbob 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$

Jimbob 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?

a$.$ Purchase cost new

b$.$ Annual cash operating costs

Salvage value at the end of $8$ years

Od$.$ Overhaul costs needed year $4.$