If the Asset Is Depreciated Completely Before the End of the Life

question 1

Multiple Choice

If the asset is depreciated completely before the end of the life of the project,what happens to the salvage value?

• A) The salvage value is ignored in the capital budget.
• B) The salvage value is amortized further.
• C) The after-tax salvage value is discounted at the date of the disposal of the asset.
• D) The asset's life is extended.

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Definitions:

Step Change

A significant shift or transformation in processes, strategies, or performance, often leading to a new level of organizational efficiency or capability.

Scope Creep

The gradual expansion of a project's objectives, features, or deliverables beyond its original goals, often leading to increased costs and delays.

Risk

The possibility of loss, injury, or other adverse or unwelcome circumstance; a situation involving exposure to danger.

Float

The duration a project activity can be postponed without affecting the start times of future tasks or the final project deadline.