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

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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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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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