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punkybrewster punkybrewster
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A month ago
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.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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TanjaGTanjaG
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A month ago
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No future cash flows are associated with its purchase.
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punkybrewster Author
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A month ago
Smart ... Thanks!
AlahuKakpar
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Yesterday
You make an excellent tutor!
Ctownsend
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2 hours ago
Brilliant ツ
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