It may be a good decision to replace an asset before its original cost has been fully recovered through increased revenues or decreased costs.

Question

Quizplus · Accepted Answer

This decision should be based on factors such as maintenance costs, technological advances, and efficiency. If the cost savings from a newer asset outweigh the remaining value of the older asset, it may be a good decision to replace it even if the original cost has not been fully recovered.

It May Be a Good Decision to Replace an Asset