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one of the decisions that managers may face almost certainly will face is replacing an old machine with a new machine now as we take a look at this what we really want to do is we want to whittle away the irrelevant costs and focused only on the differential costs those things that differ between alternatives letamp;#39;s take a look at what we know about the old machine we bought it originally for $90,000 so itamp;#39;s on the balance sheet with a historical cost of 90,000 Alex and weamp;#39;ve been depreciating this asset accumulated depreciation 33 grand so we have a Book value here of 57 thousand dollars now if we wanted to sell this machine we could sell it right now for $14,000 if we wait five years and sell it after using it for another five years we probably will only be able to sell it for $2,000 weamp;#39;re depreciating the asset at a rate of $11,000 per year which tells you that weamp;#39;ve been depreciating it for three years the depreciation thatamp;#39;s accumulat
