Buff Co. is considering replacing an old machine with a new machine. Which of the following item is economically relevant to Buff's decision? (Ignore income tax consideration)

Buff Co. is considering replacing an old machine with a new machine. Which of the following item is economically relevant to Buff's decision? (Ignore income tax consideration)


Carrying amount of old machine / Disposal value of new machine



a. Yes / No
b. No / Yes
c. No / No
d. Yes / Yes


Answer: b.


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