A company is considering buying a component part that they currently make. Items related to the equipment being used to make the component that are relevant to this decision include .

Salvage value and alternative uses for the equipment

Explanation:

The Salvage value is defined as the value of the asset that is valued after all the depreciation has been expensed. It is the asset's estimated resale value at the end of useful life of the component.

Thus in the context, the company who wishes to buy a component part for the equipment which are relevant to the decision includes the salvage value or the residual value of the component part as well as the alternative uses of the equipment to the company.

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