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Book value of existing equipment is a historical cost and not...

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Management Accounting
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Book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as

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Correct Answer: Option B
Book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as sunk cost. A sunk cost is a cost that an entity has incurred, and which it can no longer recover.
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