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17. If the capital budgeting decision includes a replacement analysis, then A. a gain from the sale of the old asset will represent a tax
17. If the capital budgeting decision includes a replacement analysis, then A. a gain from the sale of the old asset will represent a tax savings inflow. B. only incremental cash flows should be considered. C. the sale price and tax savings will increase the cash inflows throughout the asset's life. D. net present value can no longer be measured in replacement analysis. 18. An equipment replacement decision, under incremental analysis, requires A. calculating the present value of all cash flows associated with the new equipment minus B. calculating the present value of all changes in cash flows from the old equipment to the C. subtracting the purchase price of the old equipment from the purchase price of the new D. Two of the options are correct. the salvage value of the old asset. new equipment. equipment
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