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In performing a capital budgeting comparison of two mutually exclusive pieces of equipment which will be used to replace an old obsolete piece of equipment,

In performing a capital budgeting comparison of two mutually exclusive pieces of equipment which will be used to replace an old obsolete piece of equipment, all of the following are relevant, except for:

the firms tax rate

the applicable depreciation schedule

the appropriate cost of capital

the past (sunk) cost of the equipment to be replaced

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