Blue Manufacturing Company is trying to decide whether to trade in equipment used in its manufacturing process for a newer model

The new equipment will save money because it will be more efficient to use. Indicate if the following items are relevant or irrelevant to this decision.

Item Relevant or Irrelevant
The price of the new equipment
The price paid for the old equipment
The trade in value of the old equipment
The repair costs that will be incurred if the old equipment is kept
The expected cost savings of the new equipment
The costs that have been incurred on the old equipment

What will be an ideal response

Item Relevant or Irrelevant
The price of the new equipment Relevant
The price paid for the old equipment Irrelevant
The trade in value of the old equipment Relevant
The repair costs that will be incurred if the old equipment is kept Relevant
The expected cost savings of the new equipment Relevant
The costs that have been incurred on the old equipment Irrelevant