Mauldin Welding Shop is considering the purchase of new high-tech welding equipment.If the equipment is purchased,Mauldin can avoid the cost of updating the old equipment estimated to be $3,000.In determining the cash flows associated with the new equipment,the cost of updating the old equipment will be

Question

Quizplus · Accepted Answer

The cost of updating the old equipment is avoided if the new equipment is purchased, thus it is considered a cash inflow as it represents savings.

Mauldin Welding Shop Is Considering the Purchase of New High-Tech