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Problem 7 (10 points): are availa Replacement Old Machine Machine 90,000 $70,000 Original cost Useful life in years Current age in years Book value 10

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Problem 7 (10 points): are availa Replacement Old Machine Machine 90,000 $70,000 Original cost Useful life in years Current age in years Book value 10 $50,000 16,000 $14,000 Disposal value now Disposal value in 5 years Annual cash operating costs $8,000 For each item above, ndicate below whether it is a sunk cost (SC) irrelevant () or relevant (R) to the decision. Replacement Machine Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 5 years Annual cash operating costs

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