Question: Question 29 3 pts The difference between keeping the old van and replacing the old van is $37,000 in favor of keeping the old van
Question 29 3 pts The difference between keeping the old van and replacing the old van is $37,000 in favor of keeping the old van $60,000 in favor of replacing the old van O $15,000 in favor of keeping the old van $7,000 in favor of replacing the old van Question 30 3 pts When making decisions quantitative factors are relevant but qualitative factors are rarely relevant appropriate weight must be given to both quantitative and qualitative factors more weight should be given to quantitative factors O qualitative factors are not relevant as they can't be quantified Answer the following two questions using the information below: Alfarm Company is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow: Existing van New van Original cost $50,000 $90,000 Annual operating cost $17,500 $10,000 Accumulated depreciation $30,000 Disposal value now $22,000 Remaining life 10 years 10 years Salvage value in 10 years $0 $0 Annual depreciation $2,000 $9,000 Sunk costs include the original cost of the new van O the annual operating cost of the new van the accumulated depreciation of the old van O the current salvage value of the existing van
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