A company is considering the acquisition of new equipment to replace old equipment. When using the net present value method, which of the following items is NOT relevant? Ignore taxes
A) cash outflow for the purchase of new equipment
B) cash installation costs associated with the new equipment
C) disposal value of old equipment replaced with new equipment
D) fixed overhead costs that are the same under both alternatives
D
Business
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A company increasing its credit terms for customers from 1/10, net 30 to 1/10, net 60 will most likely experience:
A. an increase in cash on hand. B. a higher level of uncollectible accounts. C. an increase in the average collection period.
Business
Contracts that allow companies to transfer an asset to a customer but also give them the obligation or right to repurchase the asset at a later date.
(a) service-type warranty (b) input measures (c) franchises (d) repurchase agreements
Business