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