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In a replacement decision, all of the following should be considered except:

Looking for the answer to the question below related to Financial Management?

In a replacement decision, all of the following should be considered except:

 Options:

A. the cost of the new equipment
B. interest costs
C. the capital loss or gain on the sale of the old equipment
D. the difference in capital cost allowance tax shields between the old and new equipment

 

The Correct Answer Is:

  • B. interest costs

 

Conclusion

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