Q 11

Lucerne Enterprises spent $75,000 repairing a machine two months ago. Now, Lucerne must decide whether to pay an additional $30,000 in repairs or pay $200,000 to replace it. The new machine will be more efficient and will save Lucerne $25,000 anually. Which of the following should not be considered as part of the decision-making process? O The cost of the future repairs to the old machine O The salvage value of the old machine O The cost of the past repairs to the old machine O The increased efficiency of the new machine