Q487
Life that maximizes net present value of an asset is classified as
A.
minimum life
B.
present value life
C.
economic life
AnswerD.
transaction life
Answer: Option C
Solution
Answer: Option C
Solution:
Life that maximizes net present value of an asset is classified as economic life. Economic life is the period over which an entity expects to be able to use an asset, assuming a normal level of usage and preventive maintenance.