Question: Dan is comparing three machines to determine which one to purchase. The machines sell for differing prices, have differing operating costs and machine lives, and

 Dan is comparing three machines to determine which one to purchase.

Dan is comparing three machines to determine which one to purchase. The machines sell for differing prices, have differing operating costs and machine lives, and will be replaced when worn out. Which one of the following computational methods should Dan use as the basis for his decision? Multiple Choice Equivalent annual cost Depreciation tax shield Internal rate of return Bottom-up operating cash flow Net present value

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