$1-$ Obsolescence occurs when the technology used in an equipment has been surpassed by a better

and newer technology.

True or False

$2-$ Marginal cost is the cost at which an asset has the minimum cost life.

True or False

$3-$ Given the marginal cost data in the table below for a defender, it is economical to replace the

defender in year $1$ if EUAC of challenger is $$12,500.$

True or False