Final answer:
The depreciation method used for the old asset is not relevant to an asset replacement decision, while the cost, expected useful life, and current market value of the old asset are important factors to consider.
Step-by-step explanation:
When determining factors relevant to an asset replacement decision, certain elements are critical to the evaluation process. The cost of the new asset is pivotal as it represents the future cash outflow that must be justified by improved performance or cost savings. Similarly, the expected useful life of the new asset is integral to calculate future cash flows and determine how long the asset will provide value. The current market value of the old asset also plays a role as it could potentially offset part of the new investment through sale or trade-in.
In contrast, the depreciation method used for the old asset is not directly relevant to the replacement decision. While it affects the book value and the tax implications on the old asset, it does not influence the future benefits or cash flows of the new asset. Therefore, it should not be a deciding factor in whether to proceed with the replacement.