Dan Is Comparing Three Machines to Determine Which One to Purchase.The

question 2

Multiple Choice

Dan is comparing three machines to determine which one to purchase.The machines sell for differing prices,have differing operating costs,differing machine lives,and will be replaced when worn out.Which one of the following computational methods should Dan use as the basis for his decision?

• A)internal rate of return
• B)operating cash flow
• C)equivalent annual cost
• D)depreciation tax shield
• E)bottom-up operating cash flow

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Definitions:

Five-Factor Model

A theory that proposes five main dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Non-Conformist

An individual who does not adhere to conventional or societal standards, norms, or expectations.

Imaginative

The ability to think creatively and form mental images or concepts that are not immediately present or have never been directly experienced.

Psychodynamic Theories

Theories in psychology that posit human behavior is influenced by unconscious drives and conflicts stemming from childhood experiences.