When using the equivalent annual cost as a basis for deciding which equipment should be purchased

The equivalent annual cost method is useful in determining:    A.  which one of two machines to purchase if the machines are mutually exclusive, have differing lives, and are a one-time purchase. B.  the tax shield benefits of depreciation given the purchase of new assets for a project. C.  the operating cash flows of a cost-cutting project. D.  which one of two investments to accept when the investments have different required rates of return. E.  which one of two machines should be purchased when the machines are mutually exclusive, have different machine lives, and will be replaced once they are worn out. Refer to section 10.6

41.

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 Refer to section 10.6

42.	The equivalent annual cost considers which of the following? I. required rate of return II. operating costs III. need for replacement IV. economic life    A.  I and II only B.  II and IV only C.  II, III, and IV only D.  I, II, and IV only E.  I, II, III, and IV Refer to section 10.6