When Deciding to Lease a New Cutting Machine or Continue

question 24

Multiple Choice

When deciding to lease a new cutting machine or continue using the old machine, the irrelevant cost is ________.

• A) $50,000, cost of the old machine
• B) $20,000, cost of the new machine
• C) $10,000, selling price of the old machine
• D) $3,000, annual savings in operating costs if the new machine is purchased