When Evaluating Two Competing Proposals with Unequal Lives, Management Should

question 49

True/False

When evaluating two competing proposals with unequal lives, management should give greater consideration to the investment with the longer life because the asset will be useful to the company for a longer period of time.

---

Definitions:

Overgrowth

Excessive or abnormal increase in the size or number of cells in a body part, which can be a symptom of various medical conditions.

Scar Tissue

Fibrous tissue that forms over a wound as it heals, which can sometimes cause functional problems and differ in appearance from the surrounding tissue.

Redness

A condition of the skin or other tissues characterized by being redder than usual, often as a sign of inflammation or infection.

Swelling

An abnormal enlargement of a body part or area, typically as a result of an accumulation of fluid or inflammation.