Which of the following statements regarding a decision to keep existing equipment or replace it is false?
A) The disposal value of the old equipment is irrelevant.
B) The book value of the old equipment is irrelevant.
C) The cost of the new equipment is relevant.
D) Depreciation on the new equipment is relevant.

Question

Quizplus · Accepted Answer

The disposal value of the old equipment is relevant because it affects the net cost of replacing the equipment.

Which of the Following Statements Regarding a Decision to Keep