Salem Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $390,000 - $530,000 Accumulated Depreciation 170,000 -0- Remaining useful life 6 years -0- Useful life -0- 10 years Annual operating costs $167,000 - $151,500

If the old machine is replaced, it can be sold for $120,000.

Which of the following amounts is relevant to the replacement decision?

a. $170,000

b. $390,000

c. $151,500

d. $0