Multiple Choice
Pineapple Ltd is considering replacing its current stock of computers with a new model.It plans to evaluate three options based on the following information: 
Management is considering three options:
(i) Replace the old computers now and operate Model XA for four years,then replace with Model XD and operate for eight years,to be replaced in perpetuity;
(ii) Replace the old computers now and operate Model XXD for 12 years,to be replaced in perpetuity;
(iii) Replace the old computers now and undertake Model XA for three times its estimated life.
Which option should management choose?
A) Option (i) .
B) Option (ii) .
C) Option (iii) .
D) Indifferent between options (i) and (ii) .
Correct Answer:
Verified
Correct Answer:
Verified
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