The value of any asset:

is based upon the benefits provided by the asset in prior years

is based upon the benefits that the asset will provide the owner of the asset this year

equals the present value of future benefits accruing to the asset’s owner

is based upon the cost of the asset in prior years

Question

The value of any asset:

		
is based upon the benefits provided by the asset in prior years

		
is based upon the benefits that the asset will provide the owner of the asset this year

		
equals the present value of future benefits accruing to the asset’s owner

		
is based upon the cost of the asset in prior years

Accepted Answer

The value of any asset equals the present value of future benefits accruing to the asset's owner. This means that the value of an asset is determined by the benefits it will provide in the future. So, it is not based on the benefits provided in prior years or the cost of the asset in prior years. It's all about the future benefits.

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