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Frederick, Inc., is considering replacing a machine. The following data are available: Replacement Old Machine Machine Original cost $45,000 $35,000 Useful life in years 10

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Frederick, Inc., is considering replacing a machine. The following data are available: Replacement Old Machine Machine Original cost $45,000 $35,000 Useful life in years 10 5 Current age in years 50 Book value $25,000 - Disposal value now $8,000 - Disposal value in 5 years 0 0 Annual cash operating costs $7,000 $4,000 For the decision to keep the old machine, the relevant costs of keeping the old machine total: O $35,000

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