Answer (C) is correct . All relevant costs should be considered when evaluating an equipment-replacement decision. These include the cost of the new equipment, the disposal price of the old equipment, and the operating costs of the old equipment versus the operating costs of the new equipment. The original cost or fair market value of the old equipment is a sunk cost and is irrelevant to future decisions.
Answer (A) is incorrect because It should be considered when evaluating an equipment-replacement decision.
Answer (B) is incorrect because They should be considered when evaluating an equipment-replacement decision.
Answer (D) is incorrect because It should be considered when evaluating an equipment-replacement decision.
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