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Park Ridge Company Is Considering the Replacement of a Machine

Question 37

Multiple Choice

Park Ridge Company is considering the replacement of a machine that is presently used in production.The following data are available:
 Original cost $200,000$160,000 Wseful life in years 105 Current age in years 50 Fook value $100,000 Disposal value now $32,0000 Disposal value in 5 years 0$14,000\begin{array} { l l l l } \text { Original cost } & \$ 200,000 & \$ 160,000 \\\text { Wseful life in years } & 10 & 5 & \\\text { Current age in years } & 5 & 0 & \\\text { Fook value } & \$ 100,000 & - \\\text { Disposal value now } & \$ 32,000 & 0 & \\\text { Disposal value in } 5 \text { years } & 0 & \$ 14,000\end{array}
Adding all five years together,the total relevant costs to consider if the old machine is kept is ________.


A) $32,000
B) $68,000
C) $80,000
D) $100,000

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