When you are considering whether to replace an aging machine with a new one, you should compare the annual cost of operating the old one with the equivalent annual annuity of the new one.

Question

Quizplus · Accepted Answer

Comparing the annual cost of operating the old machine with the equivalent annual annuity of the new machine helps in determining the cost-effectiveness of replacing an aging machine with a new one.

When You Are Considering Whether to Replace an Aging Machine