Tabitha Company Is Considering Replacing a Machine That Is Presently

Multiple Choice

Tabitha Company is considering replacing a machine that is presently used in the production of its product. The following data are available: $\begin{array}{lll}&& \text { Replacement } \\&\text { Old Machine } & \text { Machine }\\\text { Origin al cost } & \$ 60,000 & \$ 35,000 \\\text { Useful lif in years } & 10 & 5 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 25,000 & - \\\text { Disposal value now } & \$ \$, 000 & - \\\text { Disposal value in 5 years } & 0 & 0 \\\text { Annual cash operating costs } & \$ 10,000 & \$ 4,000\end{array}$ The total relevant costs to consider if the old machine is kept are:

A) $50,000
B) $30,000
C) $52,000
D) $60,000