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Question 9 1 pts Select all that are true with respect to comparing machines with...

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Question 9 1 pts Select all that are true with respect to comparing machines with unequal lives - i.e., choosing the best machine for the project. If you simply estimate NPV without accounting for the different lives, NPV may lead to an incorrect decision You cannot use NPV to make this decision If you estimate NPV CORRECTLY, it will lead you to the correct decision One way to handle this type of decision, is to use what is called "equivalent annual cost" (EAC), which is essentially the all-in annual economic cost of the machine Estimate equivalent annual cost (EAC) by taking the NPV of the machine and dividing by its useful life

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