When Deciding to Lease a New Cutting Machine or Continue

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