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A hotel is planning to replace one of its vans. The book value of the existing van is $5,000. The estimated market value of the
A hotel is planning to replace one of its vans. The book value of the existing van is $5,000. The estimated market value of the existing van is $6,000. The estimated cost of a replacement van is $30,000, while the expected disposal value of the replacement van in three years is $4,000. Which of the above figures is irrelevant in making the decision to replace the existing van with a new van?
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