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Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price

Bonita Industries is contemplating the replacement of an old machine with a new one. The following information has been gathered:

Old Machine New Machine
Price $240000 $450000
Accumulated Depreciation 72000 -0-
Remaining useful life 10 years -0-
Useful life -0- 10 years
Annual operating costs $192000 $144000

If the old machine is replaced, it can be sold for $19000. Which of the following amounts is relevant to the replacement decision?

$48000

$240000

$72000

$168000

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