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Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision?
Bradley Industries is considering replacing a machine that is presently used in its production process. Which of the following is irrelevant to the replacement decision? Old Machine $70,000 Replacement Machine $45,000 5 0 Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs 5 $33,000 $10,000 $0 $7,000 $0 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? A. the current disposal value of the old machine B. the original cost of the old machine C. the sales price of the new machine D. the annual cash operating costs for both machines
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