Question: Buff Co. is considering replacing an old machine with a new machine. Which of the following items is economically relevant to Buffs decision? (Ignore income

Buff Co. is considering replacing an old machine with a new machine. Which of the following items is economically relevant to Buff’s decision? (Ignore income tax considerations.)

Carrying amount Disposal value of old machine of new machine

a. Yes No

b. No Yes

c. No No

d. Yes Yes

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