Answer the following questions using the information below:
Pizza For Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow:

-Relevant costs for this decision include:
A)the original cost of the existing van
B)accumulated depreciation
C)the current salvage value
D)the salvage value in 10 years

Question

Answer the following questions using the information below:
Pizza For Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow:
 
-Relevant costs for this decision include:
A)the original cost of the existing van 
B)accumulated depreciation 
C)the current salvage value 
D)the salvage value in 10 years

Quizplus · Accepted Answer

The current salvage value is relevant because it represents the cash inflow that could be obtained if the van is sold now.

Answer the Following Questions Using the Information Below