When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to: (a) Always compare them over a period equal to the life of the longer-lived alternative (b) Always compare them over a time period of equal service (c) Always compare them over a period equal to the life of the shorter-lived alternative (d) Find the present worth over one life cycle of each alternative

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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When comparing mutually exclusive alternatives
that have different lives by the present worth method, it is necessary to:
(a) Always compare them over a period equal to
the life of the longer-lived alternative
(b) Always compare them over a time period of
equal service
(c) Always compare them over a period equal to
the life of the shorter-lived alternative
(d) Find the present worth over one life cycle of
each alternative

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