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Q 3.40: Firm A acquired a piece of production equipment 7 years ago at a cost of $250,000. Firm B purchased a similar piece of

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Q 3.40: Firm A acquired a piece of production equipment 7 years ago at a cost of $250,000. Firm B purchased a similar piece of equipment 5 years ago for the same cost. It is likely that the ratio of the market value to book value for the equipment is A closer to 1 for Firm A than for Firm B. B closer to 1 for Firm B than for Firm A. C greater than 1 for Firm A and less than 1 for Firm B. D identical for Firm B and Firm A

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