When making a decision to replace some old equipment with new equipment,the book value of the old equipment is irrelevant information.

Question

Quizplus · Accepted Answer

The book value of the old equipment is based on its original cost minus depreciation, and may not accurately reflect its current market value or usefulness. Therefore, it is not a relevant factor in the decision-making process for replacement with new equipment.

When Making a Decision to Replace Some Old Equipment with New