Which of the following is relevant information in a decision whether old equipment presently being used should be replaced by new equipment?
A)the cost of the old equipment
B)the salvage value of the old equipment
C)the book value of the old equipment
D)the accumulated depreciation of the old equipment

Question

Quizplus · Accepted Answer

The salvage value of the old equipment is relevant because it represents the potential cash inflow from disposing of the old equipment, which affects the financial analysis of whether to replace it.

Which of the Following Is Relevant Information in a Decision