Question: Question 20 (3 points) Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old

Question 20 (3 points)

Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine

New Machine

Price

$300,000

$600,000

Accumulated Depreciation

90,000

-0-

Remaining useful life

10 years

-0-

Useful life

-0-

10 years

Annual operating costs

$240,000

$180,600

If the old machine is replaced, it can be sold for $24,000. Which of the following amounts is relevant to the replacement decision?

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