Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: If the old machine is replaced, it can be sold for $20,000.
Which of the following amounts is relevant to the replacement decision?
A) $175,000
B) $250,000
C) $49,500
D) $0

Question

Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:  If the old machine is replaced, it can be sold for $20,000.
Which of the following amounts is relevant to the replacement decision?
A) $175,000 
B) $250,000 
C) $49,500 
D) $0

Quizplus · Accepted Answer

The Answer of Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:  If the old machine is replaced, it can be sold for $20,000.
Which of the following amounts is relevant to the replacement decision?
A) $175,000 
B) $250,000 
C) $49,500 
D) $0

Sala Co Is Contemplating the Replacement of an Old Machine with with a New