A Company Which Complains That Although Their Income Is Quite

A company which complains that although their income is quite satisfactory, cash is not available for dividends because of the high cost of replacing fixed assets is operating in an economic environment where:

A) inflation is non-existent.
B) the balance sheet value of long-lived assets is more than their replacement value.
C) the prices of long-lived assets have been decreasing over an extended period of time.
D) expenditures required to replace long-lived assets are greater than depreciation expense.