Which of the following items is not included in the decision to purchase a new capital asset to replace an old one?

Question

Quizplus · Accepted Answer

Depreciation on the new machine is not included in the decision to purchase a new capital asset to replace an old one because it is a future expense that will be considered once the new asset is in use. The decision to purchase a new asset is typically based on the sales tax, installation cost, and scrap value of the old machine.

Which of the Following Items Is Not Included in the Decision