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 $4$ $$10,00020,000$

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?

Multiple Choice

Annual cash operating costs.

Purchase cost new.

Salvage value at the end of $8$ years.

Overhaul costs needed year $4.$