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Other Fields Homework Help Accounting Topic started by: Deprecated on Sep 21, 2016



Title: Smith Industries is considering replacing a machine that is presently used in its production ...
Post by: Deprecated on Sep 21, 2016
Smith Industries is considering replacing a machine that is presently used in its production process.
Which of the following is irrelevant to the replacement decision?

   Old Machine   Replacement
Machine
Original cost   $70,000   $45,000
Remaining useful life in years   5   5
Current age in years   5   0
Book value   $33,000   
Current disposal value in cash    $10,000   
Future disposal value in cash (in 5 years)   $0   $0
Annual cash operating costs   $7,000   $4,000

Which of the information provided in the table is irrelevant to the replacement decision?
A) the annual cash operating costs
B) the current disposal value of the old machine
C) the sales price of the new machine
D) the original cost of the old machine


Title: Re: Smith Industries is considering replacing a machine that is presently used in its production ...
Post by: Tanks on Sep 21, 2016
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Title: Re: Smith Industries is considering replacing a machine that is presently used in its production ...
Post by: Deprecated on Oct 12, 2016
Thanks!


Title: Re: Smith Industries is considering replacing a machine that is presently used in its production ...
Post by: Emily Webb on Nov 22, 2020
thank yiu