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Oriole Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment

Oriole Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

Old Equipment New Equipment
Purchase price $235000 $384000
Accumulated depreciation 94000 - 0 -
Annual operating costs 309000 243000

If the old equipment is replaced now, it can be sold for $63400. Both the old equipments remaining useful life and the new equipments useful life is 5 years. Which of the following amounts is irrelevant to the replacement decision?

$141000

$384000

$63400

$320600

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