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The Polar Express is considering the purchase of a super high-speed locomotive to replace the steam locomotive now in use. Selected information on the two
The Polar Express is considering the purchase of a super high-speed locomotive to replace the steam locomotive now in use. Selected information on the two machines follows: Steam Locomotive Original cost/New cost $ 5 mill Accumulated depreciation to date $ 2.5 mill Current salvage value $ 1.8 mill Estimated cost per year to operate $ 450,000 Remaining years of useful life 5 Which of the following costs is RELEVANT in the decision? High-Speed Locomotive $ 7 mill $ 0 $ $ 450,000 5 years years Cost of Steam Locomotive Accumulated Depreciation O Cost of High Speed Locomotive Estimated costs to operate
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