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According to the Net Present Value Method, If the Present

Question 18

Multiple Choice

According to the net present value method, if the present value of cost savings exceeds the acquisition cost of a new machine:


A) the old machine should be retained.
B) the new machine should be purchased.
C) the old machine should be sold off without adding the new machine.
D) the old machine should be scrapped.

Correct Answer:

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