In a decision to keep or replace existing equipment, _____ is a false statement.
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 represents a potential cash inflow that can offset the cost of acquiring new equipment. Therefore, it should be considered in the decision-making process.

In a Decision to Keep or Replace Existing Equipment, _____