Why is the original purchase price of an old machine that is being replaced never included in capital budgeting decisions?
A) It is an opportunity cost,and thus not relevant
B) No future cash flows are associated with its purchase
C) It will affect future costs
D) None of these answer choices are correct
Correct Answer:
Verified
Q53: While most accounting decisions focus on income,most
Q54: The goal of the screening decision process
Q55: When a company recoups its original investment
Q56: The minimum required rate of return is
Q57: Which of the following items is not
Q59: Managers use the capital budgeting techniques to
Q60: Mauldin Welding Shop is considering the purchase
Q61: In making a capital budgeting decision,one needs
Q62: To determine the present value of any
Q63: The interest rate used in present value
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents