In a decision to retain or replace old equipment the salvage value of the old equipment is relevant in incremental analysis.

Name: In a decision to retain or replace old equipment the salvage value of the old equipment is relevant in incremental analysis.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Salvage value is the amount of money that can be obtained from selling or disposing of old equipment. This value is relevant in incremental analysis because it represents cash flow that will be received if the old equipment is replaced.

In a Decision to Retain or Replace Old Equipment the Salvage