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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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    Solution Preview

    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 ...

    Solution Summary

    Response discusses the Replacement decision

    $2.19

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