In Calculating the Payback Period Where New Equipment Is Replacing

question 134

True/False

In calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment.

---

Definitions:

Component's

Pertaining to the individual parts or elements that make up a larger system or assembly.

Inside Size

The interior dimensions of a space or object, often referring to the habitable room or cargo space within a vehicle or any container.

Depth

The distance from the top or surface of something to its bottom or farthest point from the surface, often measured vertically.

Interviewer

A person who asks questions to gather information during an interview.