The equivalent annual cost considers which of the following?
I. required rate of return
II. operating costs
III. need for replacement
IV. aftertax salvage value

Question

Quizplus · Accepted Answer

The equivalent annual cost considers all aspects: the required rate of return, operating costs, the need for replacement, and the aftertax salvage value, as it aims to evaluate the total cost of owning and operating an asset over its life.

The Equivalent Annual Cost Considers Which of the Following