When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: O a. Find the present worth over one life cycle of each alternative O b. Always compare them over a time period of equal service O c. the life of the longer-lived alternative the life of the longer- lived alternative O d. Always compare them over a time period of equal service
When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: O a. Find the present worth over one life cycle of each alternative O b. Always compare them over a time period of equal service O c. the life of the longer-lived alternative the life of the longer- lived alternative O d. Always compare them over a time period of equal service
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:When comparing mutually exclusive
alternatives that have different lives by the
present worth method, it is necessary to:
O a. Find the present worth over one
life cycle of each alternative
O b. Always compare them over a time
period of equal service
O c. the life of the longer-lived
alternative the life of the longer-
lived alternative
O d. Always compare them over a time
period of equal service
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