31. Service life is defined as the period of time an asset a) can no longer be repaired or refurbished so that it can perform a useful function b) cannot perform its intended function without a major overhaul c) might be reasonably expected to be useful in the production of income. d) will be retained by a prudent owner to minimize costs. 32. The two major perspectives on the replacement of fixed assets are a) Insider and cash flow b) Insider and owner c) Insider and consultant d) Outsider and consultant 33. The decision to replace or keep the defender will depend on the relationship between the defender's and the challenger's annual equivalent cost (with each cost based on the asset's remaining economic life). We can conclude that the a) defender is beyond its economic life b) challenger is beyond its economic life c) None of the above answers. 34. Financial accounting is concerned with a) the costs and benefits of the various activities of a business. b) a fixed asset's purchase price less its current market value c) recording and organizing the financial data of a business. d) None of the above answers. 35. Management accounting is concerned with a) the costs and benefits of the various activities of a business and its performance. b) a fixed asset's purchase price less its current market value c) recording and organizing the financial data of a business. d) None of the above answers. If you apply a breakeven analysis to two mutually exclusive projects that have identical costs but different revenues, which of the following criteria would you use to determine the range over which one project is better than another? a) maximum criterion b) minimum criterion c) minimum and maximum criteria d) none of the above answers. 1. 2. Scenario analysis allows the analyst to examine the sensitivity of a summary measure (e.g., Present Worth) to individual changes to project parameters. a) True b) False