Q506
Situation in which company replaces existing assets with new assets is classified as
A.
replacement projects
AnswerB.
new projects
C.
existing projects
D.
internal projects
Answer: Option A
Solution
Answer: Option A
Solution:
Situation in which company replaces existing assets with new assets is classified as replacement projects. A replacement project is an undertaking in which the company eliminates a project at the end of its life and substitutes another investment.