When Deciding to Lease a New Cutting Machine or Continue

question 189

Multiple Choice

When deciding to lease a new cutting machine or continue using the old machine,the following costs are relevant EXCEPT the:

• A)$10 000 selling price of the old machine.
• B)$20 000 cost of the new machine.
• C)$3000 annual savings in operating costs if the new machine is purchased.
• D)$50 000 cost of the old machine.