What Role Does a Trade-In Allowance on Old Equipment Play

Multiple Choice

What role does a trade-in allowance on old equipment play in a decision to retain or replace equipment?

A) It is relevant since it increases the cost of the new equipment.
B) It is irrelevant since it reduces the cost of the old equipment.
C) It is irrelevant to the decision since it does not impact the cost of the new equipment.
D) It is relevant since it reduces the cost of the new equipment.