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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? Replacement Old Machine Machine Original cost $55,000 $45,000 Remaining useful life in years 5 Current age in years 5 50 5 Book value $30,000 Current disposal value in cash $10,000 Future disposal value in cash (in 5 years) $0 Annual cash operating costs $7,000 $0 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? OA. the current disposal value of the old machine OB. the original cost of the old machine OC. the sales price of the new machine OD. the annual cash operating costs for both machines
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