Question 3 J Ltd wishes to invest in a new project. It will have to transfer an existing machine between production departments at a cost of 120,000. This machine was bought 2 years ago at a cost of 600,000 and has a current book value of 130,000. In order to carry on existing projects a replacement machine will have to be bought for 550,000. What is the relevant machinery cost for the new project? 430,000 550,000 250,000 670,000