Question: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 31) Planet Design Services, Inc., is considering replacing a machine.

 MULTIPLE CHOICE. Choose the one alternative that best completes the statement

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 31) Planet Design Services, Inc., is considering replacing a machine. The following data are available: 31) Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 5 years Annual cash operating costs Replacement Old Machine Machine $650,000 $540,000 10 5 0 $380,000 $162,000 0 0 $108,000 $60,000 The difference between keeping the old machine and replacing the old machine is: A) $138,000 in favor of keeping the old machine B) $920,000 in favor of replacing the old machine C) $138,000 in favor of replacing the old machine D) $920,000 in favor of keeping the old machine

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