The salvage value of an old asset in a machine replacement decision is irrelevant.

Name: The salvage value of an old asset in a machine replacement decision is irrelevant.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The salvage value of an old asset is relevant in a machine replacement decision as it can offset the cost of the new machine. The salvage value represents the potential cash inflow that can be generated by selling the old asset, and it should be considered when calculating the overall cost of the machine replacement.

The Salvage Value of an Old Asset in a Machine