Decreasing which one of the following will increase the acceptability of a project?
A) Sunk costs
B) Salvage value
C) Depreciation tax shield
D) Equivalent annual cost
E) Accounts payable requirement

Question

Quizplus · Accepted Answer

Decreasing the Equivalent Annual Cost (EAC) of a project increases its acceptability because the EAC represents the cost per year of owning and operating an asset over its entire lifespan. A lower EAC means the project is more cost-effective, making it more attractive.

Decreasing Which One of the Following Will Increase the Acceptability