Suppose the Initial Capital Cost of a New Piece of Equipment

Multiple Choice

Suppose the initial capital cost of a new piece of equipment was $250,000 and the old piece of equipment was sold at a salvage value of $20,000.If the net initial outlay was -$235,000,then the depreciated value of the old asset must have been ______ the salvage value.

A) greater than
B) less than
C) equal to
D) either greater than or less than