Bee Company is considering replacing a machine that is presently used in the production of its product.The following data are available: $$\begin{array} { l r r }
& \text { Old Machine } & \begin{array} { r }
\text { Replacement } \
\text { Machine }
\end{array} \
\text { Original cost } & \$ 67,000 & \$ 54,000 \
\text { Useful life in years } & 13 & 4 \
\text { Current age in years } & 9 & 0 \
\text { Book value } & \$ 32,000 & - \
\text { Disposal value now } & \$ 18,000 & - \
\text { Disposal value in 5 years } & \$ 1,000 & \$ 6,000 \
\text { Annual cash operating costs } & \$ 9,000 & \$ 7,000
\end{array}$$ The _____ is irrelevant.
A)annual operating cost of the old machine
B)original cost of the replacement machine
C)disposal value of the old machine
D)disposal value in five years

Question

Bee Company is considering replacing a machine that is presently used in the production of its product.The following data are available: $$\begin{array} { l r r } 
& \text { Old Machine } & \begin{array} { r } 
\text { Replacement } \
\text { Machine }
\end{array} \
\text { Original cost } & \$ 67,000 & \$ 54,000 \
\text { Useful life in years } & 13 & 4 \
\text { Current age in years } & 9 & 0 \
\text { Book value } & \$ 32,000 & - \
\text { Disposal value now } & \$ 18,000 & - \
\text { Disposal value in 5 years } & \$ 1,000 & \$ 6,000 \
\text { Annual cash operating costs } & \$ 9,000 & \$ 7,000
\end{array}$$ The _____ is irrelevant.
A)annual operating cost of the old machine
B)original cost of the replacement machine
C)disposal value of the old machine
D)disposal value in five years

Quizplus · Accepted Answer

The Answer of Bee Company is considering replacing a machine that is presently used in the production of its product.The following data are available: $$\begin{array} { l r r } 
& \text { Old Machine } & \begin{array} { r } 
\text { Replacement } \
\text { Machine }
\end{array} \
\text { Original cost } & \$ 67,000 & \$ 54,000 \
\text { Useful life in years } & 13 & 4 \
\text { Current age in years } & 9 & 0 \
\text { Book value } & \$ 32,000 & - \
\text { Disposal value now } & \$ 18,000 & - \
\text { Disposal value in 5 years } & \$ 1,000 & \$ 6,000 \
\text { Annual cash operating costs } & \$ 9,000 & \$ 7,000
\end{array}$$ The _____ is irrelevant.
A)annual operating cost of the old machine
B)original cost of the replacement machine
C)disposal value of the old machine
D)disposal value in five years

Bee Company Is Considering Replacing a Machine That Is Presently