If an old asset is sold for less than its book value,the resulting loss will save the company taxes,hence lowering the cost of the project.

Question

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When an old asset is sold for less than its book value, the resulting loss is considered a tax-deductible expense. This will lower the company's taxable income and ultimately reduce the amount of taxes owed. Therefore, the cost of the project will also be lowered.

If an Old Asset Is Sold for Less Than Its