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Old Machine $670,000 Replacement Machine $540,000 Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 4
Old Machine $670,000 Replacement Machine $540,000 Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 4 years Annual cash operating costs le $400,000 $142,000 $0 $105,000 $61,000 For the decision to keep the old machine, the relevant costs of keeping the old machine is O A. $888,000 O B. $420,000 OC. $562,000 OD. $105,000
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