Which of the following statements about a project's economic life is (are) true?
A) most project's economic lives are not known with certainty at the start.
B) a new product may last only for a year or less if the product fails in the marketplace.
C) a new product if successful, could last for several years (with improvements or variations).
D) all of the above are true.

Question

Quizplus · Accepted Answer

All of the above statements are true. Since economic life is dependent on factors such as market demand, competition, technology advancements, and consumer behavior, it is difficult to predict a project's economic life with certainty at the start. Additionally, if a new product fails in the marketplace, it may not have a long economic life. However, if a new product is successful and undergoes improvements or variations, it could have a prolonged economic life.

Which of the Following Statements About a Project's Economic Life