Which of the following is NOT likely to be relevant in a decision to replace equipment?
A) Cost of new equipment
B) Book value of old equipment
C) Selling price of old equipment
D) Maintenance costs of old equipment

Question

Quizplus · Accepted Answer

The book value of old equipment is not likely to be relevant in a decision to replace equipment because it only represents the amount the equipment is currently worth on the company’s books and may not accurately reflect current market value or usefulness of the equipment. The cost of new equipment, selling price of old equipment, and maintenance costs of old equipment are all important factors to consider when making a decision to replace equipment.

Which of the Following Is NOT Likely to Be Relevant