a. The AW is the value of all cash flows converted to an equivalent uniform annual series of cash flows over a 5-year period b. The AW may provide a different decision than when present worth or future worth is calculated c. The AW will result in the same decision as the present worth or future worth analysis d. The AW is rarely used by individuals to determine the value of their investment portfolio in the future, such as for retirement

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Identify the one true statement about the annualized worth. See attachment.

a. The AW is the value of all cash flows converted to an equivalent uniform
annual series of cash flows over a 5-year period
b. The AW may provide a different decision than when present worth or
future worth is calculated
c. The AW will result in the same decision as the present worth or future
worth analysis
d. The AW is rarely used by individuals to determine the value of their
investment portfolio in the future, such as for retirement
Transcribed Image Text:a. The AW is the value of all cash flows converted to an equivalent uniform annual series of cash flows over a 5-year period b. The AW may provide a different decision than when present worth or future worth is calculated c. The AW will result in the same decision as the present worth or future worth analysis d. The AW is rarely used by individuals to determine the value of their investment portfolio in the future, such as for retirement
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