Data that are important to deciding whether to replace old equipment include all but which of the following?

a. estimated annual variable cost of operating the new machine

b. purchase price of the new machine

c. estimated selling price of the old machine

d. the book value of the old equipment

Question

Business

Allisson Wilcox

12 September, 18:47

Data that are important to deciding whether to replace old equipment include all but which of the following?

a. estimated annual variable cost of operating the new machine

b. purchase price of the new machine

c. estimated selling price of the old machine

d. the book value of the old equipment

+4

Answers (1)

Know the Answer?

Macey · Answer 1

C.

Explanation:

The estimation of the selling price of the old machine is not good data to make a decision in this case. Instead, book value, annual variable costs, even the purchase price of the new machine, are strong data to decide wether replace it or not.

Because all these options are related to actives of the company, so, to make a decision of replacements we need top analysis actives and compare them with the hypothetic results with the new machine.

Data that are important to deciding whether to replace old equipment include all but which of the following?a. estimated annual variable cost of operating the new machineb. purchase price of the new machinec. estimated selling price of the old machined. the book value of the old equipment

Data that are important to deciding whether to replace old equipment include all but which of the following?

a. estimated annual variable cost of operating the new machine

b. purchase price of the new machine

c. estimated selling price of the old machine

d. the book value of the old equipment