Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Basic Question 0 of 10

A replacement project is a project where a firm invests in ______.

A. new assets
B. replacing a productive asset
C. developing a new product line

User Contributed Comments 3

User Comment
jallado0 to replace a productive asset??
vvenkatr A firm produces widgets using machine A. Technology improves, and a new machine that can halve the production costs comes into the market. In this case, the firm could certainly consider replacing productive asset A by the new machine. "productive asset" = asset that produces
Sorcerer A - Expansion project
B - Repalcement project
C - Expansion project

@jallado0: Here,we have to take the best possible answer. In this case, it happens to be B.
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe types of capital investments

CFA® 2025 Level I Curriculum, Volume 2, Module 5.