 
			 
			MCQOPTIONS
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				| 1. | Physical life of an equipment is defined as | 
| A. | age at which the equipment is worn out and it can no longer reliably produce | 
| B. | the life over which the equipment can earn a profit | 
| C. | time period that maximizes the profit over the equipment life | 
| D. | age at which depreciation cost exceeds the purchase cost | 
| Answer» B. the life over which the equipment can earn a profit | |