Two types of batteries are being considered for use in electric golf carts. Burnout brand has a three year life, while Long-lasting brand has a five year life. You must choose between the two batteries and you expect to replace the brand you ultimately choose continuously. You should:
A) Take the option with the greater NPV.
B) Take the option with the lower NPV.
C) Take the option with the greater EAC.
D) Take the option with the smaller EAC.
E) Take the option with the lowest accounting break-even.
Correct Answer:
Verified
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