Question: QUESTION 27 Acme Industries is considering replacing a machine that is presently used in its production process. The following information is available: Original cost
QUESTION 27 Acme Industries is considering replacing a machine that is presently used in its production process. The following information is available: Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Machine $45,000 5 5 $25,000 $8,000 $0 $7,000 Replacement Machine $35,000 5 $0 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? The annual operating cost of the old machine The original cost of the old machine The current disposal value of the old machine Both the annual operating cost of the old machine and the current disposal value of the old machine.
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