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Currently a Firm Replaces Its Equipment Every Year

Question 48

Multiple Choice

Currently a firm replaces its equipment every year. It has calculated the equivalent annual cost of replacement as follows: Currently a firm replaces its equipment every year. It has calculated the equivalent annual cost of replacement as follows: How much can the firm save by making a replacement decision based on the economic life criterion? A) 16 B) 22 C) 25 D) 38 E) 44 How much can the firm save by making a replacement decision based on the economic life criterion?


A) 16
B) 22
C) 25
D) 38
E) 44

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