The average annual cost will be minimized by replacing a machine when_____.
A. average cost to date is equal to the current maintenance cost
B. average cost to date is greater than the current maintenance cost
C. average cost to date is less than the current maintenance cost.
D. next year running cost in more than average cost of nth year
Answer:A
The average annual cost will be minimized by replacing a machine when_____.
A. average cost to date is equal to the current maintenance cost B. average cost to date is greater than the current maintenance cost C. average cost to date is less than the current maintenance cost. D. next year running cost in more than average cost of nth year