Obsolescence

question 99

Multiple Choice

Obsolescence:

• A) Occurs when an asset is at the end of its useful life.
• B) Refers to a condition where a property,plant and equipment asset is no longer useful in producing goods and services.
• C) Refers to a condition where the capacity of a property,plant and equipment asset is too small to meet the company's productive demands.
• D) Is the same as inadequacy.
• E) None of these answers is correct.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds, including the cost of equity and debt financing.

Cash Inflows

The total amount of money coming into a business from various sources, including sales, investments, and financing activities.

Exchange Rate

The rate at which one currency can be exchanged for another, often used in international trade and investment.

Triangle Arbitrage

An arbitrage strategy that exploits disparities in currency exchange rates in three different markets to make a risk-free profit.