If you have reliable economic forecast for five years only, and you would like to evaluate two alternatives with five and six years service lives, the best method to do so is
If you have reliable economic forecast for five years only, and you would like to evaluate two alternatives with five and six years service lives, the best method to do so is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If you have reliable economic forecast for
five years only, and you would like to
evaluate two alternatives with five and six
years service lives, the best method to do
so is
Select one:
a. to choose the alternative with the
highest AW.
b. to choose the alternative with the
highest PW.
c. Both repeated lives method and
study period method produce the
same result.
O d. to choose the alternative with the
highest PW, FW, or AW.
e. to choose the alternative with the
highest FW.
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