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Home Q & A Board Other Fields Homework Help Business Accounting
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Deprecated Deprecated
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7 years ago
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
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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7 years ago
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Deprecated Author
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#2
7 years ago
Thanks!
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#3
3 years ago
thank yiu
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