Jansen Industries is considering replacing a machine that is presently used in its production process. The following information is available:

Old Machine

Replacement

Machine

Original cost

$25,000

$35,000

Remaining useful life in years

1

5

Current age in years

5

0

Book value

$5,000

Current disposal value in cash

$3,000

Future disposal value in cash (in 5 years)

$0

$2,000

Annual cash operating costs

$7,000

$4,000

Which of the information provided in the table is irrelevant to the replacement decision?

Question 49 options:

The current disposal value of the old machine

The original cost of the old machine

The annual operating cost of the old machine

The future disposal value of the replacement machine