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Other Fields Homework Help Accounting Topic started by: punkybrewster on Jan 29, 2023



Title: Why is the original purchase price of an old machine that is being replaced never included in ...
Post by: punkybrewster on Jan 29, 2023
Why is the original purchase price of an old machine that is being replaced never included in capital budgeting decisions?

▸ It is an opportunity cost, and thus not relevant.

▸ No future cash flows are associated with its purchase.

▸ It is a cost expensed when the new machine is acquired.

▸ It will affect future costs.


Title: Why is the original purchase price of an old machine that is being replaced never included in ...
Post by: TanjaG on Jan 29, 2023
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