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StormLrd StormLrd
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Why is the book value of old equipment irrelevant to the equipment replacement decision?
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Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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AllopaAllopa
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The book value of old equipment is made up of the cost and accumulated depreciation, both of which are sunk costs and therefore irrelevant.
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