11.1 Your supervisor is on the companys capital investment decision team that is to decide on alternatives

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11.1 Your supervisor is on the company’s capital investment decision team that is to decide on alternatives for the acquisition of a new computer system for the company. The supervisor says, “The book value of the existing computer system for the firm that we are considering replacing is nothing but an accounting amount and as such is irrelevant in the capital expenditure analysis.” Does this reasoning make sense? Why or why not?

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Principles Of Accounting Managerial Accounting Volume 2

ISBN: 9781947172609

1st Edition

Authors: Patty Graybeal, Mitchell Franklin, Dixon Cooper

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