A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts was purchased

Question:

A milling machine with enhanced CNC controls that allow for high-speed machining of free-form parts was purchased two years ago for $195,000.

The company wants to purchase a recently available faster model with 8-axis control for $240,000.

The presently owned machine can be sold today for

$105,000. Its operating costs over the past 2 years have been $30,000 per year. The value that should be used as P for the presently owned machine is:

a. $240,000

b. $195,000

c. $105,000

d. $30,000

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Asim farooq

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