GB 519 RANK Let's Do This /gb519rank.com GB 519 RANK Let's Do This /gb519rank.com | Page 56

Student Answer:
2.5 years.
3.0 years.
3.3 years.
3.6 years.
4.0 years.
Question 14. Question : A truck, costing $25,000 and uninsured,
was wrecked the very
first day it was used. It can either be disposed of for $5,000 cash
and be replaced with a similar truck costing $27,000, or rebuilt
for
$20,000 and be brand new as far as operating characteristics and
looks are concerned. The net relevant cost of the replacing
option
is:
Student Answer:
$5,000.
$20,000.