In a decision to keep or replace existing equipment, is a false statement.
A) the book value of the old equipment is irrelevant
B) the disposal value of the old equipment is irrelevant
C) depreciation on the new equipment is relevant
D) the cost of 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.

In a Decision to Keep or Replace Existing Equipment, Is