Question: Planet Design Services, Inc., is considering replacing a machine. The following data are available: Old Machine Replacement Machine Original cost $640,000 $520,000 Useful life in

Planet Design Services, Inc., is considering replacing a machine. The following data are available: Old Machine Replacement Machine Original cost $640,000 $520,000 Useful life in years 12 6 Current age in years 6 0 Book value $400,000 Disposal value now $162,000 Disposal value in 6 years $0 $0 Annual cash operating costs $107,000 $61,000 For the decision to keep the old machine, the relevant costs of keeping the old machine is ________.

A. $804,000 B. $642,000 C. $492,000 D. $107,000

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