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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 repeat ability 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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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91240290

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