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6. Which of the following best describes the composition of depreciable asset in the initial outlay...

6. Which of the following best describes the composition of depreciable asset in the initial outlay calculation?

  • purchase price of a new asset
  • purchase price of a new asset, shipping/installation cost, initial investment in working capital, and net proceeds from the sale of the old asset
  • purchase price of a new asset, shipping/installation cost, and initial investment in working capital
  • purchase price of a new asset and shipping/installation cost
  • none of the above
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Answer #1

The correct answer is:-

b) purchase price of a new asset, shipping/installation cost, initial investment in working capital, and net proceeds from the sale of the old asset

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