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The Weekes Company is considering the replacement of equipment used in operations. The following data are available: Old Equipment $210,000 12 5 S65,000 $30,000 0
The Weekes Company is considering the replacement of equipment used in operations. The following data are available: Old Equipment $210,000 12 5 S65,000 $30,000 0 $9,000 New Equipment $10,000 7 0 Original cost Useful life in years Current age in years Book value Disposal value now Disposal value in 7 years Annual cash operating costs $8,000 1) What is the total relevant cost for keeping the equipment? $ 2) What is the total relevant cost for replacing the equipment? S 3) Should the old equipment be replaced? 3 page ohnson-As....doc Nikitalohnson-As...docx
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