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3. Which of the following is the definition of EAC (Equivalent Annual Cost)? A. The average cost of buying a machine calculated by the straight-line
3. Which of the following is the definition of EAC (Equivalent Annual Cost)?
A. The average cost of buying a machine calculated by the straight-line method.
B. The equal annual cash flow (annuity) which can generate the same present value as the cost of buying and operating a machine.
C. A cost that varies in relation to either production volume or the amount of services provided.
D. A cost that does not increase or decrease in conjunction with any activities.
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