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Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $350000 New Machine
Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $350000 New Machine $700000 Price 105000 -0- Accumulated Depreciation Remaining useful life 10 years -0- -0- 10 years Useful life Annual operating costs $280000 $210000 of the old machine is replaced. It can be sold for $28000. The company uses straight-line depreciation with a zero salvage value for all of its assets Which of the following amounts is relevant to the replacement decision? $28000 $70000 $105000 @ $350000
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