If the Salvage Value of Equipment at the End of a Project

question 20

True/False

If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions.

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Definitions:

Enforceable

Capable of being imposed or upheld by law, referring to contracts, agreements, or rules that can be legally compelled.

Essential Terms

The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.

Enforceable Contract

A binding legal agreement between two or more parties that is recognized by the law and has elements of offer, acceptance, consideration, and mutual consent.