Capitalized costs(CC) are used for: Select one: O a. projects with salvage values considered. O b. projects that P/F factors less than 1.0. O c. alternatives with low and high first cost. O d. projects with very long expected lives or long planning horizons
Capitalized costs(CC) are used for: Select one: O a. projects with salvage values considered. O b. projects that P/F factors less than 1.0. O c. alternatives with low and high first cost. O d. projects with very long expected lives or long planning horizons
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q. Capitalized costs(CC) are used for:
Select one:
O a. projects with salvage values considered.
O b. projects that P/F factors less than 1.0.
O c. alternatives with low and high first cost.
O d. projects with very long expected lives or long planning horizons.
Q. The annual worth method offers a prime computational and interpretation advantage because the AW value needs to be calculated for only one life cycle. The AW välue determined over one life cycle is the AW for all future life cycles. Therefore. It is necessary to use the LCM of lives to satisfy the equal-service requirement.
Select one:
O.a. False
O.b. True
Transcribed Image Text:If you deposit $2,042 today in a savings account that pays 8% interest, what is the equivalent worth 5 years from now?
8%
TABLE 13
Discrete Cash Flow: Compound Interest Factors
Single Payments
Uniform Series Payments
Arithmetic Gradients
Compound
Present
Worth
P/F
Sinking
Fund
A/F
Compound
Amount
F/A
Capital
Present
Gradient
Present Worth
P/G
Gradient
Uniform Series
A/G
Amount
Recovery
A/P
Worth
F/P
P/A
1.0800
0.9259
1.00000
1.0000
1.08000
0.9259
2.
1.1664
0.8573
0.48077
2.0800
0.56077
1.7833
2.5771
0.8573
0.4808
3.
1.2597
0.7938
0.30803
3.2464
0.38803
2.4450
0.9487
1.4010
4.
1.3605
0.7350
0.22192
4.5061
0.30192
3.3121
4.6501
0.6806
0.6302
5.
1.4693
5.8666
7.3359
0.17046
3.9927
0.25046
0.21632
7.3724
10.5233
18465
6.
L5869
0.13632
4.6229
2.2763
Select one:
O a. $18,780
O b. $3.006
c. $2.000
d. $3.000
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