When Using the Equivalent Annual Cost as a Basis for Deciding

question 55

Multiple Choice

When using the equivalent annual cost as a basis for deciding which equipment should be purchased,the equipment under consideration must fit which two of the following criteria?
I.differing productive lives
II.differing manufacturers
III.required replacement at end of economic life
IV.differing initial cost

• A)I and II
• B)I and III
• C)I and IV
• D)II and IIII
• E)II and IV

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Definitions:

Tertiary Sector

The segment of the economy that provides services to consumers and businesses, as opposed to goods manufacturing or primary industries like agriculture.

Participatory Democracy

A model of democracy in which citizens have the power to decide directly on policy and politicians are responsible for implementing those policy decisions.

Consensus

The general agreement or collective unanimity among members of a group or society.

Hereditary Leadership

A system of governance or organizational leadership where authority is passed down through family lines.