If a business is considering whether to replace old equipment with newer equipment,the cost of operating the old equipment,compared to the cost of operating the new equipment,is relevant to the business decision.

Question

Quizplus · Accepted Answer

The cost of operating the old equipment versus the cost of operating the new equipment is a relevant factor to consider when deciding whether to replace the old equipment with newer equipment. This information can help the business determine if the long-term savings from operating newer equipment will outweigh the upfront cost of purchasing the new equipment.

If a Business Is Considering Whether to Replace Old Equipment