Which of the following is not relevant information in a decision whether old equipment presently being used should be replaced by new equipment? a) The cost savings if the new equipment is purchased b) The book value of the old equipment c) The salvage value of the old equipment d) The cash price of the new equipment

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14-04-2022
Business

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Which of the following is not relevant information in a decision whether old equipment presently being used should be replaced by new equipment? a) The cost savings if the new equipment is purchased b) The book value of the old equipment c) The salvage value of the old equipment d) The cash price of the new equipment

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anthougo anthougo · Answer 1 · 2022-04-25T12:07:19+02:00

The irrelevant information in whether old equipment should presently be used or replaced by new equipment is B) The book value of the old equipment.

What is relevant information?

Relevant information in decision-making is information that can guide the decision.

When deciding to purchase new equipment, the sunk costs of the old equipment are not relevant.

However, all future information, including the salvage value of the old equipment, cost savings, and cash price of the new equipment becomes relevant.

The irrelevant information in whether old equipment should presently be used or replaced by new equipment is B) The book value of the old equipment.

Learn more about relevant information at https://brainly.com/question/24553900