Please help with both. Otherwise either works! remain unused. (5 Pts) 24. Replac

Question

Please help with both. Otherwise either works!

remain unused. (5 Pts) 24. Replacement Analysis: Select the correct answers to fill in the blanks. Enter the letter for each. There are more answers than questions; therefore, some of the items will When replacement analysis is conducted, one of the assets under consideration In a replacement analysis, the presently-owned asset is usually known as th the asset's In a replacement analysis, irrelevant past costs are known as The usage time that will result in an asset's lowest equivalent annual cu s lowest equivalent annual cost is known as with each year of ownership. In an economic service life analysis, the capital recovery term a. Presently owned b. Decreases c. Increases d. Replacement Life e. Sunk Costs f. Economic Service Life g. Defender Inflation: Select the correct answers to fill in the blanks. Enter the letter for each. There (5 Pts) are more answers than questions; therefore, some of the items will remain unused. Inflation occurs when the value of the currency has over time. The market interest rate is a combination of the real interest rate and the If future dollars are expressed in terms of today's dollars, the inflation-adjusted present worth is found by using the value in the present worth factors. In order to obtain the buying (purchasing) power of future dollars in terms of constant value dollars, the first step is to use the market interest rate to obtain the future value (FV) and then divide by. To determine the actual amount of money accumulated at a future time, use the a. i+f b. Increased c. Market interest rate d. (1 + 1)" e. i+f+ if f. Inflation Rate g. Decreased

Explanation / Answer

24. Replacement analysis

1. Presently owned(there are two terms in replacement analysis, first is defender, which is existing asset or presently owned and second, is challenger which is new alternative. As per the option given the asset which is considered in replacement analysis is presently owned.)

2. Defender (as explained above it is referred as existing asset ehich is owned by the company).

3. Sunk costs (when the book value of asset is greater than market value, and cannot be recovered during replacement, is known as sunk costs. Therefore, it is irrelevant past cost.)

4. Economic service life ( it is referred as the cost which includes ownership cost and operating cost, which get reduced over the time.)

5. Decreases (capital recovery can also be termed as ownership cost which get reduced over time).

25. Inflation

1. Decreased (value of currency decreases over time and reduced the purchasing power which is termed as inflation).

2. Inflation rate.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.