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If the Asset Is Depreciated Completely Before the End of the Life

Question 31

Multiple Choice

If the asset is depreciated completely before the end of the life of the project,what happens to the salvage value?


A) The salvage value is ignored in the capital budget.
B) The salvage value is amortized further.
C) The after-tax salvage value is discounted at the date of the disposal of the asset.
D) The asset's life is extended.

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