When making the decision to replace an old factory machine with a new one,financial and non-financial factors are considered.As with any investment,a company investing in factory machinery expects that the new machinery will generate a future return.
Required:
a.Define the two types of returns that can be expected from investments in a long-term asset such as factory machinery.
b.List three financial factors that a company might consider before making an investment in factory machinery.
c.List three non-financial factors that a company might consider before making an investment in factory machinery.
d.List one cost that is not included in a decision to replace an old factory machine with a new one.

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The Answer of When making the decision to replace an old factory machine with a new one,financial and non-financial factors are considered.As with any investment,a company investing in factory machinery expects that the new machinery will generate a future return.
Required:
a.Define the two types of returns that can be expected from investments in a long-term asset such as factory machinery.
b.List three financial factors that a company might consider before making an investment in factory machinery.
c.List three non-financial factors that a company might consider before making an investment in factory machinery.
d.List one cost that is not included in a decision to replace an old factory machine with a new one.

When Making the Decision to Replace an Old Factory Machine