When Using the Net Present Value Method to Compare Keeping

question 124

Multiple Choice

When using the net present value method to compare keeping an old building or disposing it and acquiring a new building,the current cash residual value of the old building should be

• A)deducted from the price paid for the new building.
• B)viewed as a cash outflow.
• C)added to the price of the new building.
• D)irrelevant to the decision.

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