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If Machine A has a payback period of 3 years and Machine B has a payback period of 2 years, then we should always select
If Machine A has a payback period of 3 years and Machine B has a payback period of 2 years, then we should always select Machine A over Machine B. Making this conclusion could be misleading because: Question 2 options: a. It ignores interest rates b. It does not account for the original cost difference between Machine A and Machine B c. It does not account for what happens after the payback period Both a and c above None of the above since it will be always be a correct conclusion
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