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Author Question: Why is the original purchase price of an old machine that is being replaced never included in ... (Read 44 times)

swande

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on: Feb 5, 2023
Why is the original purchase price of an old machine that is being replaced never included in capital budgeting decisions?
◦ It is an opportunity cost, and thus not relevant.
◦ No future cash flows are associated with its purchase.
◦ It is a cost expensed when the new machine is acquired.
◦ It will affect future costs.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by swande on Feb 5, 2023

Jim457

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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swande

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)

shewald78

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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