In Calculating the Payback Period Where New Equipment Is Replacing

question 135

True/False

In calculating the payback period where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be added to the cost of the new equipment.

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Definitions:

Production Function

A mathematical model that describes the maximum output of a firm, given the inputs of labor, capital, and technology.

Plastic

A wide range of synthetic or semi-synthetic materials that are malleable and so can be molded into solid objects of diverse shapes.

Wood

A hard, fibrous material made of the stems and branches of trees or shrubs, often used for construction, furniture, and fuel.

Production Function

A mathematical relationship describing the maximum output possible from a given set of inputs in the production process.