SixthZ is trying to decide to decide whether or not to purchase a new table saw for cutting its treehouse wood. Information related to the old saw and the new saw is as follows:
New Saw Old Saw
Original Cost $10,000 $7,000
Accumulated Depreciation Not yet acquired $3,000
Book Value Not yet acquired $5,000
Current Disposal Value Not yet acquired $3,000
Annual Operating Cost $500 $1,000
Useful Life 4 years 7 years
Current Age 0 years 3 years
Remaining Useful Life 4 years 4 years
Terminal Disposal Value (in 4 years) $3,000 $500
Should SixthZ purchase the new saw?
Group of answer choices
No, because it would lose $2,500 by purchasing the new saw
No, because it would lose $8,000 by purchasing the new saw
No, because it would lose $4,500 by purchasing the new saw
No, because it would lose $6,500 by purchasing the new saw