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DJ Woodwork is considering the replacement of its painting booth. Here is the information supplied by the controller Old Paint Booth New Paint Booth Original

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DJ Woodwork is considering the replacement of its painting booth. Here is the information supplied by the controller Old Paint Booth New Paint Booth Original cost $30,000 $20,000 Useful life in years 7 Current age in years 2. 5 0 Book value $22,000 Disposal value now $5,000 Disposal value in 5 years $2,000 $2,000 Annual cash operating costs $5,500 $3,000 Given the above information, make a recommendation to the owners of DJ Woodworking. Show which costs are relevant and tell them how much they will or will not save. DJ Woodwork is considering the replacement of its painting booth. Here is the information supplied by the controller Old Paint Booth New Paint Booth Original cost $30,000 $20,000 Useful life in years 7 Current age in years 2. 5 0 Book value $22,000 Disposal value now $5,000 Disposal value in 5 years $2,000 $2,000 Annual cash operating costs $5,500 $3,000 Given the above information, make a recommendation to the owners of DJ Woodworking. Show which costs are relevant and tell them how much they will or will not save

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