Question: True False Although the general depreciation system (GDS) provides a faster recovery period compared to the alternative depreciation system (ADS), the ADS is more desirable

 True False Although the general depreciation system (GDS) provides a faster

True False Although the general depreciation system (GDS) provides a faster recovery period compared to the alternative depreciation system (ADS), the ADS is more desirable since using Straight-line depreciation. True False Although the payback period indicates the speed in which the initial investment is recovered, it may not exist under a specific MARR. True False If the minimum EUAC of the best challenger is greater than the defender marginal cost in a specific time period, we must replace the defender by the challenger. True False While capital financing determines a variety of sources for capital funds, capital allocation determines the amount of funds obtained from each source. Use the table below to answer the following three questions (Q17 Q20). B Alternative Initial Cost Annual Benefit Useful Life Rate of Return A $600 82 10 6.1% $1,200 196 10 10.1% $400 70 10 11.7% True False Although the general depreciation system (GDS) provides a faster recovery period compared to the alternative depreciation system (ADS), the ADS is more desirable since using Straight-line depreciation. True False Although the payback period indicates the speed in which the initial investment is recovered, it may not exist under a specific MARR. True False If the minimum EUAC of the best challenger is greater than the defender marginal cost in a specific time period, we must replace the defender by the challenger. True False While capital financing determines a variety of sources for capital funds, capital allocation determines the amount of funds obtained from each source. Use the table below to answer the following three questions (Q17 Q20). B Alternative Initial Cost Annual Benefit Useful Life Rate of Return A $600 82 10 6.1% $1,200 196 10 10.1% $400 70 10 11.7%

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