Which of these costs would not be relevant to an investment decision to replace an existing asset with a newer model capable of increasing production?

Question

Quizplus · Accepted Answer

The carrying amount of the asset to be replaced is a sunk cost and has already been incurred. It is not relevant to the decision of whether to replace the asset with a newer model. The future operating costs of the existing asset, trade-in value, and disposal value are all relevant costs to consider when making the investment decision.

Which of These Costs Would Not Be Relevant to an Investment