When conducting an incremental analysis, how do the costs of past repairs and future repairs impact the retain-or-replace decision?

• A : The cost of past repairs is irrelevant because they are sunk costs, but the cost of future repairs is relevant because they impact anticipated net income.

• B : Neither the cost of past repairs nor the cost of future repairs is relevant because they represent qualitative factors that cannot be measured in an incremental analysis.

• C : The cost of past repairs is relevant because they impact anticipated net, but the cost of future repairs is irrelevant because they are opportunity costs.

• D : Both the cost of past repairs and the cost of future repairs are relevant because they represent quantitative factors that directly affect net income.