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In Order to Make a Replacement Decision, a Firm Calculated

Question 1

Multiple Choice

In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows: In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows: When should the firm replace its equipment? A) in 1 year B) in 2 years C) in 3 years D) in 4 years E) in 5 years When should the firm replace its equipment?


A) in 1 year
B) in 2 years
C) in 3 years
D) in 4 years
E) in 5 years

Correct Answer:

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