Question

as an alternative to the old machine, the company can rent a new one. it will cost 5,000$ a year. in analysing the cost-volume behaviour the rental is what kind of cost?

Answer 1

I believe the question is which one would cost less so you would have to calculate the cost on depreaction and compare it to the cxost of a new one or calculate how much one cost to buy brand new and compare it to the cost of renting one