FSA - average age technology, equipment, following, advantage

Elliotbay

In industries where there are rapid changes in technology related to production processes, which of the following characteristics will most likely indicate that a firm has a competitive advantage?

A) Low capital expenditures.

B) Low average age of equipment.

C) High earnings per share.


Your answer: C was incorrect. The correct answer was B) Low average age of equipment.

What does average age mean, the schweser gives a formula and one sentence, but it doesn't really explain. If the average age of an asset is 2 and the other company's average age is 6, does it mean that the asset with 2 years is BETTER or worse? Does it mean average age of equipment? so newer better??