Question

The equivalent annual cost method is useful in determining: Multiple Choice the operating cash flow for mutually exclusive projects ignoring any fixed asset acquisitions or dispositions. which one of two machines should be purchased when the machines are mutually exclusive, have differing lives, and will be replaced at the end of their lives. the minimum price that should be bid to earn a specified rate of return. which one of two machines to purchase if the machines are mutually exclusive, have differing lives, and are a one-time purchase. which one of two investments to accept when the investments have differing required rates of return, differing costs, and will not be replaced once they wear out.

Answer 1

Answer:

which one of two machines should be purchased when the machines are mutually exclusive, have differing lives, and will be replaced at the end of their lives.

Explanation:

The Equivalent annual cost would be used for different reasons such as capital budgeting but the important purpose is that it is usedfor analyzing two or more expected projects having different  time period , in which the costs are the most relevant variable.

So according to the given situation, the above represent the answer and the same would be considered