Question
#39) Image Company is evaluating the possibility of replacing an old machine with a new one. The old one cost $200,000, can be sold now
#39) Image Company is evaluating the possibility of replacing an old machine with a new one. The old one cost $200,000, can be sold now for $80,000, can be sold in 5 years for $0, costs $40,000 a year to operate, and has a remaining life of 5 years. The new one would cost $400,000, could be sold in 5 years for $20,000, costs $10,000 a year to operate and has a remaining life of 5 years. Which of the following figures would not be relevant in making the decision?
Group of answer choices
$80,000 sales price of old
$200,000 cost of old
$40,000 per year operating cost of old
$400,000 cost of new
$10,000 per year operating cost of new
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