In a Replacement Decision, If an Old Asset Sells Below

question 89

Multiple Choice

In a replacement decision, if an old asset sells below its book value

• A) a gain has incurred.
• B) a loss has incurred.
• C) there is no gain or loss since it is replaced.
• D) the net present value is negative.

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Definitions:

Minimum Wage

The lowest legally allowable pay per hour for workers.

Real Wage Rate

The purchasing power of wages when adjusted for inflation, indicating the quantity of goods and services that can be bought.

Minimum Wage

The lowest legal salary that employers can pay their workers.

Million People

Denotes a population or group size consisting of approximately one million individuals.