An equipment replacement decision, under incremental analysis, requires

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Incremental analysis involves comparing the changes in costs and benefits between two alternatives. In an equipment replacement decision, the incremental analysis would involve comparing the cash flows associated with the old equipment to those associated with the new equipment. Option A is incorrect, as it only considers the present value of the cash flows associated with the new equipment and the salvage value of the old asset, without considering the changes in cash flows. Option C is also incorrect, as it only considers the purchase prices of the old and new equipment, and does not consider the changes in cash flows. Option D is incorrect, as option A and B are mutually exclusive.

An Equipment Replacement Decision, Under Incremental Analysis, Requires