Question 07 Perfect World Co. upgrades the parts of its machine's engine. It is estimated that this will increase the output expected from the machine to a level higher than originally estimated. Perfect World Co. does not have a policy to revalue its machines. Assume that the cost of the upgrade can be measured reliably. Can the cost of the upgrade be capitalized? Select the best response, and then click Submit. Yes, because the upgrade increases the output, i.e., the flow of economic benefits to the entity is probable and the cost can be measured reliably. Yes, but only if the upgrade is particularly large and not incurred on a regular basis. No, because the upgrade was not separately identified at the time that the machine was acquired. No, because Perfect World Co. does not have a policy to revalue its machines