$\backslash$table$[[,$Old Machine,Replacement Machine$],[$Original cost$,$$$200,000,$$$160,000],[$Useful life in years,$10,(5],[$Current age in years,$5,0],[$Book value,$$100,000,],[$Disposal value now,$$52,000,],[$Disposal value in $5$ years,$,0],[$Annual cash operating costs,$$30,000,$$$14,000]]$

Should Cocoa Company keep or replace the machine? Complete a schedule showing relevant and irrelevant costs for the next $5$ years.

Earth Company is considering replacing a machine that is presently used in the production of its product. The following data are available:

$\backslash$table$[[,$Old Machine,Replacement Machine$],[$Original cost$,$$$286,000,$$$168,000],[$Useful life in years,$11,6],[$Current age in years,$5,0],[$Book value,$$130,000,-],[$Disposal value now,$$71,000,],[$Disposal value in $5$ years,$0,0],[$Annual cash operating costs,$$46,000,$$$24,000]]$