3. Choose the correct answer. Only one answer may be marked/circled. 1. The equal service requirement associated with present worth comparisons can be met by either comparing different life alternative over their LCM of lives or by comparing them over a a. Specified study period b. Capitalized cost. c. Life-cycle cost d. Present worth equivalents 2. The internal rate of return on an investment refers to the interest rate earned on the: a. Recovered money from an investment. b. Unrecovered balance of the investment. 2

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.