Included in the fixed overheads is a monthly lease payment of 3,000,000 for new

plant and equipment required to meet the demand for the three products. This

machine replaced an older model with a book value of 15,600,000 that is depreciated at 1,300,000 per annum and that can be sold for 500,000. This machine has no other use. Explain how you would account for the old machine in your decision making if that machine was to be scrapped.