Park Ridge Company is considering the replacement of a machine that is presently used in production.The following data are available:
$$\begin{array} { l l l l }
\text { Original cost } & \$ 200,000 & \$ 160,000 \
\text { Wseful life in years } & 10 & 5 & \
\text { Current age in years } & 5 & 0 & \
\text { Fook value } & \$ 100,000 & - \
\text { Disposal value now } & \$ 32,000 & 0 & \
\text { Disposal value in } 5 \text { years } & 0 & \$ 14,000
\end{array}$$
Adding all five years together,the total relevant costs to consider if the old machine is kept is ________.
A) $32,000
B) $68,000
C) $80,000
D) $100,000

Question

Park Ridge Company is considering the replacement of a machine that is presently used in production.The following data are available:
$$\begin{array} { l l l l } 
\text { Original cost } & \$ 200,000 &  \$ 160,000 \
\text { Wseful life in years } & 10 & 5 & \
\text { Current age in years } & 5 & 0 & \
\text { Fook value } & \$ 100,000 &  - \
\text { Disposal value now } & \$ 32,000 & 0 & \
\text { Disposal value in } 5 \text { years } & 0 & \$ 14,000
\end{array}$$
Adding all five years together,the total relevant costs to consider if the old machine is kept is ________.
A) $32,000
B) $68,000
C) $80,000
D) $100,000

Quizplus · Accepted Answer

The Answer of Park Ridge Company is considering the replacement of a machine that is presently used in production.The following data are available:
$$\begin{array} { l l l l } 
\text { Original cost } & \$ 200,000 &  \$ 160,000 \
\text { Wseful life in years } & 10 & 5 & \
\text { Current age in years } & 5 & 0 & \
\text { Fook value } & \$ 100,000 &  - \
\text { Disposal value now } & \$ 32,000 & 0 & \
\text { Disposal value in } 5 \text { years } & 0 & \$ 14,000
\end{array}$$
Adding all five years together,the total relevant costs to consider if the old machine is kept is ________.
A) $32,000
B) $68,000
C) $80,000
D) $100,000

Park Ridge Company Is Considering the Replacement of a Machine