Question: Fairfield Industries is considering whether to retain or replace a piece of equipment with a $63,000 book value and a scrap value of $14,000. After

Fairfield Industries is considering whether to retain or replace a piece of equipment with a $63,000 book value and a scrap value of $14,000. After much discussion, Fairfield decides to replace the equipment. How should Fairfield treat the old machines scrap value?

A) as an irrelevant revenue

B) as a relevant cost

C) as an avoidable cost

D) as a sunk cost

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