Question
Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine Original
Ida Enterprises is considering replacing a machine that is presently used in its production process. The following information is available:
| Old Machine | Replacement Machine | |
| Original Cost | 60,000 | 35,000 |
| Remaining Useful life in years | 5 | 5 |
| Current age in years | 5 | 0 |
| Book Value | 25,000 | |
| Current disposal value in cash | 8,000 | |
| Future disposal value in cash (in 5 years) | 0 | 0 |
| Annual cash operating costs | 7,000 | 4,000 |
Which of the information provided in the table is irrelevant to the replacement decision?
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The Customer Support Audit
Authors: Colin G. Armistead
1st Edition
190776609X, 978-1907766091
