Assume a firm has an ongoing need for a machine, and the current machine is operating efficiently. The firm should plan to replace this machine when it

Multiple Choice

• reaches the end of its depreciable life.
• can be sold at a price that exceeds the current book value.
• can be replaced with a machine that has a lower equivalent annual cost.
• reaches a point where the book value is less than half of the original cost.
• is fully paid for.