Samantha Company is considering replacing a machine that is presently used in the production of its product. The following data are available: $\begin{array}{lll}& \text { Old Machine } & \begin{array} { l }
\text { R eplacem } \
\text { M achine }
\end{array} \
\text { Original cost } & \$ 67,000 & \$ 54,000 \
\text { Useful life in years } & 13 & 4 \
\text { Current age in years } & 9 & 0 \
\text { Book value } & \$ 32,000 & - \
\text { Disposal value now } & \$ 18,000 & - \
\text { Disposal value in 5 years } & 0 & 0 \
\text { Annual cash operating } & \$ 9,000 & \$ 7,000\\text { costs}
\end{array}$ is irrelevant.
A) The disposal value of the old machine
B) The annual operating cost of the old machine
C) The disposal value in five years
D) The original cost of the replacement machine

Question

Samantha Company is considering replacing a machine that is presently used in the production of its product. The following data are available: $\begin{array}{lll}& \text { Old Machine } & \begin{array} { l } 
\text { R eplacem } \
\text { M achine }
\end{array} \
\text { Original cost } & \$ 67,000 & \$ 54,000 \
\text { Useful life in years } & 13 & 4 \
\text { Current age in years } & 9 & 0 \
\text { Book value } & \$ 32,000 & - \
\text { Disposal value now } & \$ 18,000 & - \
\text { Disposal value in 5 years } & 0 & 0 \
\text { Annual cash operating } & \$ 9,000 & \$ 7,000\\text { costs}
\end{array}$ is irrelevant.
A) The disposal value of the old machine
B) The annual operating cost of the old machine
C) The disposal value in five years
D) The original cost of the replacement machine

Quizplus · Accepted Answer

The Answer of Samantha Company is considering replacing a machine that is presently used in the production of its product. The following data are available: $\begin{array}{lll}& \text { Old Machine } & \begin{array} { l } 
\text { R eplacem } \
\text { M achine }
\end{array} \
\text { Original cost } & \$ 67,000 & \$ 54,000 \
\text { Useful life in years } & 13 & 4 \
\text { Current age in years } & 9 & 0 \
\text { Book value } & \$ 32,000 & - \
\text { Disposal value now } & \$ 18,000 & - \
\text { Disposal value in 5 years } & 0 & 0 \
\text { Annual cash operating } & \$ 9,000 & \$ 7,000\\text { costs}
\end{array}$ is irrelevant.
A) The disposal value of the old machine
B) The annual operating cost of the old machine
C) The disposal value in five years
D) The original cost of the replacement machine

Samantha Company Is Considering Replacing a Machine That Is Presently