The decision to replace old equipment with new equipment can be analyzed by

Question

Quizplus · Accepted Answer

The decision to replace old equipment with new equipment involves incremental analysis to compare the costs and benefits of keeping the old equipment versus replacing it with new equipment. By calculating the cost of each decision separately, one can determine the incremental cost of replacing old equipment with new equipment and assess whether the benefits outweigh the costs. Therefore, both incremental analysis and calculating the cost of each decision separately - keep or replace are necessary to make an informed decision about replacing old equipment with new equipment.

The Decision to Replace Old Equipment with New Equipment Can