Benson Company Is Considering The Replacement

Benson Company is considering the replacement of a machine that is presently used in production. The following data are available: Old Machine Original cost -> Sunk cost New Machine $57,000 Useful life in years in-Dep $35,000 Current age in years / Book value NOTC-F So / $39,000 1 Disposal value now $8,000 Disposal value in 5 years O Annual cash operating costs $7,000 ,000 74) Adding all five years together, the total relevant costs to consider if the new machine is purchased are........... A) $12,000 B) $27,000 D) $55,000 75) Adding all five years together, the total relevant costs to consider if the old machine is not replaced are.......... A) $22,000 B) $31,000 CI SK$5 000 D) $39,000 76) Adding all five years together, what is the difference in total relevant costs between the old machine and the new machine? C) $22,000 D) $37,000 AS12,000 B) $15,000 is determined by