$16$

Multiple Choice

$4$ points

You run a security company and are considering the replacement of some surveillance equipment that you purchased last year. The new equipment requires a one$-$time payment at the time of acquisition and a monthly fee for data backup. The monthly fee for the replacement equipment is lower than for the equipment purchased last year, and the new equipment meets higher data protection standards.

Is the following cash flow relevant when making your machine acquisition decision? The savings in monthly fee required by the replacement equipment.

$$ Yes

No