answer by true or false 1-The annual worth of an asset for one life cycle is the same as that calculated over two, three, or any other number of life cycles. 2-In a present worth analysis of unequal-life alternatives, equal service comparison is achieved by comparing the alternatives over their LCM time period. 3-In the three cases involving the relative length of compounding and payment periods for uniform series cash flows, the only one where the original cash flow diagram is changed is when the payment period is shorter than the compounding period. 4-For cash flows of $2,500 in month 15, $3,000 in month 16, and amounts increasing by $500 through month 25, the n value to use in the P/G factor is 10.
answer by true or false 1-The annual worth of an asset for one life cycle is the same as that calculated over two, three, or any other number of life cycles. 2-In a present worth analysis of unequal-life alternatives, equal service comparison is achieved by comparing the alternatives over their LCM time period. 3-In the three cases involving the relative length of compounding and payment periods for uniform series cash flows, the only one where the original cash flow diagram is changed is when the payment period is shorter than the compounding period. 4-For cash flows of $2,500 in month 15, $3,000 in month 16, and amounts increasing by $500 through month 25, the n value to use in the P/G factor is 10.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:answer by true or false
1-The annual worth of an asset for one life
cycle is the same as that calculated over two,
three, or any other number of life cycles.
2-In a present worth analysis of unequal-life
alternatives, equal service comparison is
achieved by comparing the alternatives over
their LCM time period.
3-In the three cases involving the relative
length of compounding and payment periods
for uniform series cash flows, the only one
where the original cash flow diagram is
changed is when the payment period is
shorter than the compounding period.
4-For cash flows of $2,500 in month 15,
$3,000 in month 16, and amounts increasing
by $500 through month 25, the n value to use
in the P/G factor is 10.
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