The economic service life of an asset is (a) The length of time required to recover the first cost of the asset (b) The time when the operating cost is at a minimum (c) The time when the salvage value goes below 25 of the first cost (d) The time when the AW of the asset is at a minimum ...

The economic service life of an asset is: (a) The length of time required to recover the

Question:

The economic service life of an asset is:

(a) The length of time required to recover the first cost of the asset

(b) The time when the operating cost is at a minimum

(d) The time when the AW of the asset is at a minimum

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...

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