Reference no: EM13743985
1. Which of the following is the proper value to use as the " first cost" of the defender in a replacement analysis?
a - the present replacement cost
b- the present trade-in value
c- the present book value
d- the present market value
2. Which of the following is a replacement repeatability assumption?
a- The period of the needed service of the asset is indefinitely long.
b-The service life of the defender and the challenger is the same.
c- The best challenger will continue to be available in subsequent years and will be unchanged in its economic costs.
d- Both A and C
3. When conducting a replacement analysis, which of the following equals the first cost of a challenger asset minus the current salvage value of the defender?
a-The real replacement cost perspective
b- The cash flow perspective
c- The opportunity cost perspective
d- The repeatability perspective
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