When Deciding to Purchase a New Cutting Machine or Continue

Multiple Choice

When deciding to purchase a new cutting machine or continue using an existing machine, the following costs are all relevant except the:

A) Original cost of the old machine.
B) Cost (purchase price) of the new machine.
C) Disposal (salvage) value of the old (existing) machine.
D) Annual savings in operating costs if the new machine is purchased.
E) Maintenance costs, if expected to be less under the new machine.