Ida Enterprises is considering replacing a machine that is presently used in its production process.The following information is available:

Which of the information provided in the table is irrelevant to the replacement decision?

Question

Ida Enterprises is considering replacing a machine that is presently used in its production process.The following information is available:

Which of the information provided in the table is irrelevant to the replacement decision?

Quizplus · Accepted Answer

The original cost of the old machine is irrelevant to the replacement decision, as it is a sunk cost that cannot be recovered. The decision should be based on the current and future costs and benefits associated with either keeping the old machine or replacing it with a new one. The other options provided in the table are relevant to the decision, as they provide information on the costs associated with operating and disposing of the old machine.

Ida Enterprises Is Considering Replacing a Machine That Is Presently