In a retain or replace equipment decision trade-in allowance available on old equipment

A) increases the cost of the new equipment.
B) is relevant because it will not be realized if the old equipment is retained.
C) is not relevant to the decision.
D) reduces the cost of the old equipment.

Trade-In Allowance

The amount credited to the buyer by the seller when the buyer trades in an old item towards the purchase of a new item.

Retain Or Replace

A decision-making process regarding whether to keep an existing asset or replace it with a new one, considering aspects such as costs, benefits, and performance.