An equipment replacement decision, under resultant cash flow analysis, requires
A) calculating the present value of all cash flows associated with the new equipment minus the salvage value of the old asset.
B) calculating the present value of all changes in cash flows from the old equipment to the new equipment.
C) subtracting the purchase price of the old equipment from the purchase price of the new equipment.
D) two of the other answers are correct
Correct Answer:
Verified
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