ABC, Inc. is considering whether to repair a five-year-old fork lift or to purchase a used one as a replacement. The company estimates that it would take $3,000 to repair the existing fork lift, which is the same amount needed to purchase the used fork lift. Cost-related information for both assets is as follows:
A cost that is not relevant for this asset-replacement decision is:
A) The acquisition cost of the used fork lift.
B) The acquisition cost of the existing fork lift.
C) The repair cost for the existing fork lift.
D) The annual operating cost for the existing fork lift.
E) The annual operating cost for the used fork lift.
Correct Answer:
Verified
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