In Order to Make a Replacement Decision When the Defender

Multiple Choice

In order to make a replacement decision when the defender and the challenger are identical, one should assume that

A) the economic lives of the assets are very long relative to the planning time horizon.
B) the technology can be changed during the economic life of an asset.
C) the relative price and interest rate vary over time.
D) the replacement decision is repeated an indefinitely large number of times.
E) the defender and the challenger are made using different technologies.