Which of the following is of least importance in determining whether to replace an old piece of equipment?

Question

Quizplus · Accepted Answer

The historical cost of the old piece of equipment is the least important because it is a sunk cost and cannot be changed. The decision to replace the equipment should be based on the incremental costs and revenue associated with the new equipment, the estimated cost of the new equipment, and the estimated salvage value of the old equipment.

Which of the Following Is of Least Importance in Determining