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Home Q & A Board Other Fields Homework Help Business Accounting
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punkybrewster punkybrewster
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A year 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 year ago
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