LC Corp. has an old machine with operating costs of $164,200 per year and a net book value of $23,000. LC is looking at two replacement options. Option A costs $210,000 and has $118,000 per year of operating costs. Option B costs $216,000 and has $114,400 of annual operating costs. All machines have a six year life and a $0 salvage value. The old machine could be sold for $19,200 today. Which of the following lists LC's options from least costly to most costly? A : Retaining the old machine is least costly, followed by option B, then option A. B : Option B is least costly, followed by option A, then retaining the old machine. C : Retaining the old machine is least costly, followed by option A, then option B. D : Option A is the least costly, followed by option B, then retaining the old machine.
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