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Replacement decision

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Which of the following items are relevant to the decision to replace equipment? Explain why each of the following is or is not relevant to the replacement decision.
a. Book value of old equipment
b. Disposal value of old equipment
c. Cost of new equipment

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Response discusses the Replacement decision

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Which of the following items are relevant to the decision to replace equipment? Explain why each of the following is or is not relevant to the replacement decision.

a. Book value of old equipment
Its not relevant as it is a sunk cost.

As per investorwords, Sunk cost ...

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