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 | |