Question: In a replacement study, the correct value to use when determining the purchase price of the challenger is: (a) Its first cost when it was

In a replacement study, the correct value to use when determining the purchase price of the challenger is:

(a) Its first cost when it was purchased

(b) Its first cost minus the trade-in value of the defender

(c) Its first cost plus the trade-in value of the defender

(d) The book value of the defender

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