d$)$ Imagine a company that owns a machine that was purchased five years ago for $$50,000.$ The machine is currently being considered for replacement with a newer model that costs $$70,000.$ The current machine has a book value of $$10,000$ and a market value of $$5,000.$ Operating the old machine costs $$15,000$ per year in maintenance, while the new machine would only cost $$5,000$ per year.

Required:

Identify whether the original purchase price of the current machine is relevant or irrelevant in the decision to replace it$.$ Justify your answer. $-$ do the calculation

$(6$ marks$)$