Peter Company's expected sales for April are $27,600. Other information follows:

Budgeted Operating Expenses	Amount
Wages	$2,000
Advertising	1,680
Depreciation	1,440
Rent	2,560
Other expenses	5% of sales

Which operating expense is a noncash expense?

Select one:

a. Advertising

b. Wages

c. Rent

d. Depreciation

Stevens Company is considering the replacement of a machine that is presently used in production. The following data are available:

	Old Machine	New Machine
Original cost	$60,000	$35,000
Useful life in years	10	5
Current age in years	5	0
Book value	$25,000	-
Disposal value now	$8,000	-
Disposal value in 5 years	0	0
Annual cash operating costs	$10,000	$4,000

Adding all five years together, the total relevant costs to consider if the old machine is kept are ________.

Select one:

a. $60,000

b. $50,000

c. $30,000

d. $52,000