Discounting in the life cycle costing method of economic evaluation:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
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Which of the following is FALSE?
Discounting in the life cycle costing method of economic evaluation:
Select one:
O a. Compares the initial capital cost with the savings achieved in the first year of operation
O b. Reflects the time value of money
O c.
Estimates the present value of future costs and savings
O d. Reduces all future sums of money to equivalent sums in a base period
Transcribed Image Text:Which of the following is FALSE? Discounting in the life cycle costing method of economic evaluation: Select one: O a. Compares the initial capital cost with the savings achieved in the first year of operation O b. Reflects the time value of money O c. Estimates the present value of future costs and savings O d. Reduces all future sums of money to equivalent sums in a base period
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