In a Decision Concerning Replacing Old Equipment with New Equipment

question 134

True/False

In a decision concerning replacing old equipment with new equipment, the book value of the old equipment can be considered an opportunity cost.

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Definitions:

Fishery

An area with a naturally occurring population of aquatic species which can be harvested for economic purposes.

Marine Animal

An animal that inhabits the ocean or other marine environments.

User Cost

The economic cost of using a resource today, which considers the lost opportunity of using it in the future.

Energy

The capacity to do work, manifested in physical forms such as heat, light, motion, and chemical energy, crucial to all aspects of life and industry.