Question: Planet Design Services, Inc., is considering replacing a machine. The following data are available: Old Machine Replacement Machine Original cost $670,000 $490,000 Useful life in
Planet Design Services, Inc., is considering replacing a machine. The following data are available:
| Old Machine | Replacement Machine | ||
| Original cost | $670,000 | $490,000 | |
| Useful life in years | 8 | 4 | |
| Current age in years | 4 | 0 | |
| Book value | $350,000 | - | |
| Disposal value now | $ 162 comma 000$162,000 | - | |
| Disposal value in 44 years | $0 | $0 | |
| Annual cash operating costs | $108,000 | $57,000 |
The difference between keeping the old machine and replacing the old machine is ________.
A.$840,000 in favor of replacing the old machine
B. $124,000 in favor of keeping the old machine
C. $840,000 in favor of keeping the old machine
D. $124,000 in favor of replacing the old machine
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