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Sala Cois Contemplating the Replacement of an Old Machine with a a New

question 47

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Sala Co.is contemplating the replacement of an old machine with a new one.The following information has been gathered:  Old Machine  New Machine  Price $300,000$600,000 Accumulated Depreciation 90,0000 Remaining useful life 10 years 0 Useful life 010 years  Annual operating costs $240,000$180,600\begin{array}{lrr}&\text { Old Machine }&\text { New Machine }\\\text { Price } & \$ 300,000 & \$ 600,000 \\\text { Accumulated Depreciation } & 90,000 & -0- \\\text { Remaining useful life } & 10 \text { years } & -0- \\\text { Useful life } & -0- & 10 \text { years } \\\text { Annual operating costs } & \$ 240,000 & \$ 180,600\end{array} If the old machine is replaced, it can be sold for $24,000. Which of the following amounts is relevant to the replacement decision?


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