Which of the following items is not included in the decision to purchase a new capital asset to replace an old one?
A)The price of the new machine
B)Shipping on the new machine
C)The original purchase price of the old machine
D)Installation costs

Question

Quizplus · Accepted Answer

The original purchase price of the old machine is not relevant to the decision to purchase a new capital asset, as it is a sunk cost that cannot be recovered. The other factors listed (price of the new machine, shipping, installation costs) are all relevant to the decision-making process.

Which of the Following Items Is Not Included in the Decision