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Replacement Machine Old Machine Original cost $650,000 $520,000 Useful life in years 6 12 Current age in years 6 Book value $390,000 Disposal value now
Replacement Machine Old Machine Original cost $650,000 $520,000 Useful life in years 6 12 Current age in years 6 Book value $390,000 Disposal value now $112,000 $0 $0 Disposal value in 6 years Annual cash operating costs $103,000 $64,000 The difference between keeping the old machine and replacing the old machine is O A. $910,000 in favor of replacing the old machine O B. $174,000 in favor of replacing the old machine c. $910,000 in favor of keeping the old machine D. $174,000 in favor of keeping the old machine
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