Overland Company is considering replacing a machine that is presently used in the production of its product. The following data are available:
-The difference in cost between keeping the old machine and replacing the old machine, ignoring income taxes, is
A) $74,000 in favour of keeping the old machine.
B) $24,000 in favour of keeping the old machine.
C) $74,000 in favour of replacing the old machine.
D) $24,000 in favour of replacing the old machine.

Question

Overland Company is considering replacing a machine that is presently used in the production of its product. The following data are available: 
-The difference in cost between keeping the old machine and replacing the old machine, ignoring income taxes, is
A) $74,000 in favour of keeping the old machine. 
B) $24,000 in favour of keeping the old machine. 
C) $74,000 in favour of replacing the old machine. 
D) $24,000 in favour of replacing the old machine.

Quizplus · Accepted Answer

The Answer of Overland Company is considering replacing a machine that is presently used in the production of its product. The following data are available: 
-The difference in cost between keeping the old machine and replacing the old machine, ignoring income taxes, is
A) $74,000 in favour of keeping the old machine. 
B) $24,000 in favour of keeping the old machine. 
C) $74,000 in favour of replacing the old machine. 
D) $24,000 in favour of replacing the old machine.

Overland Company Is Considering Replacing a Machine That Is Presently