Sunbury Company Is Considering the Replacement of a Machine That

Multiple Choice

Sunbury Company is considering the replacement of a machine that is presently used in production.The following data are available:
$\begin{array}{lll}&\text { Old Machine }&\text { NEW Machine }\\\text { Original cost } & \$ 60,000 & \$ 35,000 \\\text { Useful life in years } & 10 & 5 \\\text { Current age in years } & 5 & 0 \\\text { Book value } & \$ 25,000 & -\\\text { Disposal value now } & \$ 8,000 & - \\\text { Disposal value in } 5 \text { years } & 0 & 0 \\\text { Annual cash operating costs } & \$ 12,000 & \$ 4,000\end{array}$
Adding all five years together,the total relevant costs to consider if the old machine is kept are ________.

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