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Two machines are being considered. One of the machines has a three year life, while the other machine has a five year life. You must
Two machines are being considered. One of the machines has a three year life, while the other machine has a five year life. You must choose between the two machines and you expect to replace the machine you ultimately choose continuously. You should:
Multiple Choice
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Take the option with the lowest accounting break-even.
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Take the option with the greater NPV.
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Take the option with the lower NPV.
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Take the option with the greater EAC.
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Take the option with the smaller EAC.
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