Which of the Following Is True in a Decision to Keep

question 183

Multiple Choice

Which of the following is true in a decision to keep or replace existing equipment?

• A) The book value of the old equipment is relevant.
• B) The disposal value of the old equipment is relevant.
• C) Property taxes is relevant.
• D) Depreciation on the new equipment is relevant.

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Definitions:

Inductive Reactance

The opposition that an inductor presents to alternating current, due to the inductor's ability to store energy in a magnetic field.

Parallel Circuit

An electrical circuit in which components are connected across common points or junctions, providing multiple paths for current to flow.

Apparent Power

The total power in an AC circuit, equal to the product of the root mean square voltage and current, measured in volt-amperes (VA).

Parallel Circuit

An electrical circuit in which the same voltage is applied across all components, with each component directly connected to the voltage source.