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Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price
Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $300,000 $600,000 Accumulated 90,000 -- Depreciation Remaining useful life 10 years -O- Useful life -0- 10 years Annual operating costs $240,000 $180,600 If the old machine is replaced, it can be sold for $24,000. Which of the following amounts is relevant to the replacement decision? a) $90,000 b) $59,400 c) $210,000 d) $300,000
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