Equipment Should Be Retired When

question 53

Multiple Choice

Equipment should be retired when:

• A)it is in poor condition.
• B)the net present value of future cash flows is negative.
• C)the net present value of future cash flows is equal to or less than zero.
• D)a better model becomes available.

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Definitions:

Performance

The act of executing or conducting a task or activity, often measured against a standard of accuracy, completeness, and speed.

Creative

Showing the ability or power to bring new and imaginative ideas into existence; characterized by originality and expressiveness.

Rejection of Ideas

The act of dismissing or refusing to accept proposed concepts or viewpoints.

Convergent Thinker

Describes someone who approaches problems by attempting to find a single, optimal solution to a problem through logic and analysis.