When lives are equal adjustments to cash flows are not required.. The MEAS can be compared by directly comparing their equivalent worth (PW, FW, or AW) calculated using the MARR. The decision will be the same regardless of the equivalent worth method you use. For a MARR of 12%, select from among the MEAS below. ..... . ... .... ..... ... ..... .... Alternatives A C Capital investment -$150,000 -$85,000 -$75,000 -$120,000 Annual revenues $28,000 $16,000 $15,000 $22,000 Annual expenses -$1,000 -$550 -$500 -$700 Market Value (EOL) $20,000 $10,000 $6,000 $11,000 Life (years) 10 10 10 10

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
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When lives are equal adjustments to cash flows are not required.. The
MEAS can be compared by directly comparing their equivalent worth
(PW, FW, or AW) calculated using the MARR. The decision will be the
same regardless of the equivalent worth method you use. For a MARR
of 12%, select from among the MEAS below.
..... . ...
.... ..... ...
..... ....
Alternatives
A
C
Capital investment
-$150,000
-$85,000
-$75,000
-$120,000
Annual revenues
$28,000
$16,000
$15,000
$22,000
Annual expenses
-$1,000
-$550
-$500
-$700
Market Value (EOL)
$20,000
$10,000
$6,000
$11,000
Life (years)
10
10
10
10
Transcribed Image Text:When lives are equal adjustments to cash flows are not required.. The MEAS can be compared by directly comparing their equivalent worth (PW, FW, or AW) calculated using the MARR. The decision will be the same regardless of the equivalent worth method you use. For a MARR of 12%, select from among the MEAS below. ..... . ... .... ..... ... ..... .... Alternatives A C Capital investment -$150,000 -$85,000 -$75,000 -$120,000 Annual revenues $28,000 $16,000 $15,000 $22,000 Annual expenses -$1,000 -$550 -$500 -$700 Market Value (EOL) $20,000 $10,000 $6,000 $11,000 Life (years) 10 10 10 10
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