Which of the Following Statements Is True Regarding a Replacement

question 6

Multiple Choice

Which of the following statements is true regarding a replacement decision?

• A) The benefits resulting from the new investment is treated as an inflow.
• B) The net cash flow from the sale of an old equipment is treated as an outflow at t = 0 (initial investment outlay).
• C) The depreciation expenses on the new equipment is treated as an outflow.
• D) Any loss on the sale of the old equipment is multiplied by the tax rate and is treated as an outflow at t = 0 (initial investment outlay).
• E) An increase in the net working capital is treated as an inflow when the project begins (initial investment outlay) and as an outflow when the project ends (terminal cash flow).

---

Definitions:

Zeitgebers

Environmental cues, such as light and temperature, that regulate the biological clock and rhythmic physiological or behavioral events.

Rhythmicity

The quality or state of being rhythmic, especially the regular recurrence of physiological processes or behaviors in an organism.

Entrainers

External cues or agents that synchronize biological rhythms to the environment, such as light influencing circadian rhythms.

Entrained Circadian Rhythm

The synchronization of the body's natural circadian rhythms (sleep-wake cycle and other biological processes) with the environment, such as the light-dark cycle.