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Replacement Decision if an Old Asset Sells Below Book Value

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In a replacement decision, if an old asset sells below book value, from a tax standpoint
A) there is a decrease in cash flow,
B) there is an increase in cash flow,
C) there is no effect on cash flow,
D) there is a decrease in net present value

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This solution provides a explanation for the answer to the multiple choice question in 53 words.

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In a replacement decision, if an old asset sells below book value, from a tax standpoint
A) there is a decrease in cash flow,
B) there ...

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