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The economic service life of an asset is: (a) The length of time required to recover the first cost of

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The economic service life of an asset is:

(a) The length of time required to recover the first cost of the asset

(b) The time when the operating cost is at a minimum

(c) The time when the salvage value goes below 25% of the first cost

(d) The time when the AW of the asset is at a minimum

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...

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Related Book For  answer-question
Engineering Economy

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Details
Chapter # 11
Section: Problems
Problem: 49
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Question Posted: December 26, 2018 05:44:02
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