In Net Present Value Analysis,a Reduction in a Future Cash

question 81

Multiple Choice

In net present value analysis,a reduction in a future cash outflow is treated as ________.

• A) an irrelevant cash flow
• B) a cash inflow
• C) a disposal value of a long-term asset
• D) an expense

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Definitions:

Number Of Failures

A metric used to quantify the instances where a product, component, or system ceases to function as intended.

Maintenance History

Records detailing past maintenance actions performed on equipment or facilities to ensure their efficient and safe operation.

Preventive Maintenance

Scheduled maintenance activities performed on equipment to prevent unexpected failures and ensure it operates efficiently.

Breakdown Maintenance

Maintenance work performed after equipment has failed, aimed at restoring it to operational condition.