Smith Industries Is Considering Replacing a Machine That Is Presently

question 10

Multiple Choice

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?
$$\begin{array} { | l | r | r | } \hline & \text { Old Machine } & \begin{array} { l } \text { Replacement } \\\text { Machine }\end{array} \\\hline \text { Original cost } & \$ 70,000 & \$ 45,000 \\\hline \text { Remaining useful life in years } & 5 & 5 \\\hline \text { Current age in years } & 5 & 0\\\hline \text { Book value } & \$ 33,000 & \\\hline\text { Current disposal value in cash }&\$10,000\\\hline \text { Furrent disposal value in cash } & \$ 0 & \$ 0 \\\hline \text { Annual cash operating costs } & \$ 7,000 & \$ 4,000 \\\hline\end{array}$$ Which of the information provided in the table is irrelevant to the replacement decision?

• A)the sales price of the new machine
• B)the original cost of the old machine
• C)the current disposal value of the old machine
• D)the annual cash operating costs

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Definitions:

Depressor Anguli Oris

The depressor anguli oris is a facial muscle that contributes to the downward movement of the corners of the mouth, expressing sadness or frowning.

Orbicularis Oris

A circular muscle around the mouth that controls lip movements, such as puckering and closing.

Levator Labii Superioris

The Levator Labii Superioris is a facial muscle that elevates the upper lip, aiding in expressions of disgust or snarling.

Platysma

A broad, thin muscle located in the chest and neck that is involved in facial expression and movement of the jaw.