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As n, the number of years an asset is kept in service, increases, it is reasonable to expect which of the following: The annual operating
As n, the number of years an asset is kept in service, increases, it is reasonable to expect which of the following: The annual operating costs of the asset increase. The future salvage value of the asset decreases. If n is sufficiently large, operating and maintenance expenses eventually become larger than capital recovery. All of the given answer choices. Question 5 When we use the retirement and replacement method, we must make sure to: Replace the old asset with the new asset this year if the minimum EUAC of the old is less than the minimum EUAC of the new. Only evaluate the comparison of the old asset to the new asset for the first year. Ignore sunk costs, which usually apply to the old asset. Treat the initial purchase price of the old asset as the cost of keeping the old asset another year
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