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Final answer:
A trade-in allowance on old equipment is relevant to a decision to retain or replace equipment as it differs across the two options.
Explanation:
A trade-in allowance on old equipment is relevant to a decision to retain or replace equipment because it differs across the two options. When considering whether to keep the existing equipment or replace it, the value offered as a trade-in can impact the overall cost and benefit analysis.
For example, if a company receives a significant trade-in allowance for the old equipment, it can reduce the cost of acquiring new equipment, making replacement a more attractive option.
On the other hand, if the trade-in allowance is minimal, it may be more cost-effective to retain the old equipment instead.
Learn more about Equipment replacement decision here:
https://brainly.com/question/27961949
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