Capital costs for a defender are higher than the operating costs, and the annual operating costs are gradually increasing. Capital costs for a defender are less than the operating costs, and the annual operating costs are monotonically declining. Capital costs for a defender are less than the operating costs, and the increase in annual operating costs is not monotonic. Capital costs for a defender are small compared to the operating costs, and the annual operating costs are gradually increasing. Capital costs for a defender are higher than the operating costs, and the increase in annual operating costs is not monotonic. What are the two conditions behind the One Year Principle?

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The One Year Principle also known as the Rule of One Year is a principle used in capital budgeting t... View the full answer