Barnum Enterprises is considering updating its computers with faster models that would aid in processing its sales invoices faster, and eliminate any overtime processing. Identify whether each item below would be relevant or irrelevant to the manager when making the decision to replace or not replace.

1. Orginal cost of computer being considered for replacement.

A.

Relevant

B.

Irrelevant

2. Accumulated depreciation taken on old computer being considered for replacement.

A.

Relevant

B.

Irrelevant

3. Estimated annual operating costs of the new computer being considered for purchase.

A.

Relevant

B.

Irrelevant

4.Trade-in value received for old computer being considered for replacement.

A.

Relevant

B.

Irrelevant