How Would the Deprival Value of an Asset Be Determined

question 51

Multiple Choice

How would the deprival value of an asset be determined?

• A) It is the net selling price except where the value to the business (present value) is less or the current replacement cost greater.
• B) It is the present value of the future cash flows to be generated by the asset except where the current replacement cost or net selling price is less than that value.
• C) It is the value to the business of the asset (present value) within the bounds that this value is not less than the net selling price or greater than its current replacement cost.
• D) It is the current replacement cost where the present value is less than the current replacement cost and greater than the net selling price.
• E) None of the given Answers.

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Definitions:

Sensitization

An increased reaction to a stimulus following repeated exposure, particularly to something intense or adverse.

Habituation

The process by which a person or animal becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Higher-order Conditioning

A classical conditioning process where a conditioned stimulus is paired with a neutral stimulus to elicit a conditioned response without the need for the original unconditioned stimulus.

Sensitization

The increased responsiveness of a sensory system to a stimulus, usually following repeated exposure to that stimulus.