A pulpwood-forming machine was purchased and installed 6 years ago for $50000. The declared salvage value...
A pulpwood-forming machine was purchased and installed 6 years ago for $50000. The declared salvage value was $5000, with a useful life of 10 years. The machine can be replaced with a more efficient model that costs $90000, including installation. The present machine can be sold on the open market for $25000. The cost to remove the old machine is $4000. Which are the relevant costs for the old machine?
Homework Answers
relevant costs for the old machine are:
cost to remove the old machine = 4000
current disposal price of old machine = 25000
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A pulpwood-forming machine was purchased and installed 6 years
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