Which of the following is true of replacement projects?
A)They generate costs that are planned and directly related to the sales forecast.
B)Their benefits usually come from expected savings.
C)They need not be adjusted for depreciation and taxes.
D)They imply increases in costs and revenues.

Question

Quizplus · Accepted Answer

Replacement projects generally involve replacing old or outdated equipment or facilities with newer and more efficient ones. The benefits of such projects are usually in the form of expected savings, such as lower maintenance costs, reduced energy consumption, and improved productivity. While there may be some costs associated with the replacement, these are typically offset by the expected savings over the life of the new equipment or facility. Depreciation and taxes may still need to be considered when evaluating the costs and benefits of a replacement project.

Which of the Following Is True of Replacement Projects