Companies frequently use the composite approach when the assets are similar in nature and have approximately the same useful lives.

Which of the following is an example of a variable cost for an amusement park?

A) salary of the park manager B) food cart supplies C) liability insurance D) interest on the property's mortgage E) property taxes

What is the value of an asset which pays $200 a year for the next 5 years and can be sold for $1,500 at the end of five years from now? Assume that the opportunity cost is 10 percent

What will be an ideal response?