Question: Smith Industries is considering replacing a machine that is presently used in its production process. The following information is available: Replacement Old Machine Machine $45,000

 Smith Industries is considering replacing a machine that is presently used

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

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