The Enger Company Is Contemplating Replacing Some Old Equipment

Multiple Choice

The Enger Company is contemplating replacing some old equipment. The pertinent information is as follows:
-The difference in cost between keeping the old equipment and replacing the old equipment, ignoring income taxes, is

A) $23,500 in favour of replacing the old equipment.
B) $23,500 in favour of keeping the old equipment.
C) $6,500 in favour of keeping the old equipment.
D) $6,500 in favour of replacing the old equipment.