The relevant depreciation expense for a replacement investment is the difference between depreciation on the new asset(s) and the old asset(s).

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The relevant depreciation expense for a replacement investment is the difference between depreciation on the new asset(s) and the old asset(s), as the old asset becomes obsolete and is replaced by a newer asset. The difference between the two will determine the net impact on the company's overall depreciation expense.

The Relevant Depreciation Expense for a Replacement Investment Is the Difference