Ace Limited is considering a new project that will require the use of a currently idle?machine. The machine has a current book value of $12,000 and a potential disposal value of?$10,500 (before $200 disposal costs) and hence has been under depreciated by $1,500 over?its life to date.? If the machine is to be fit for purpose on the new project it will have to be?relocated at a cost of $500 and refitted at a further cost of $800.??
What is the relevant cost of using the machine on the new project??