The Following Statements Are All Correct EXCEPT ________

question 11

Multiple Choice

The following statements are all correct EXCEPT ________.

• A) recommended oil pressure is 1 PSI for every 1000 RPM
• B) oil pressure readings should be made at idle and 2500 RPM
• C) oil pressure testing should be done at normal operating temperature
• D) oil pressure may be tested by removing the oil pressure sending unit and installing a pressure gauge

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Definitions:

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, relevant in depreciation calculations.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Payback Period

The time it takes for an investment to generate an amount of income or cash flows to recover the initial capital outlay.

Incremental Cost Approach

A method used to analyze the financial impact of additional costs incurred when making business decisions.